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Edition: U.S. Article Comments (1) Save Email Print Reprints Most Popular Most Shared Jamaica declares emergency in capital after attacks 23 May 2010 UPDATE 1-'Shrek' sequel underperforms at box office 23 May 2010 Obama tells military: prepare for North Korea aggression 2:05am EDT Duchess of York apologizes after tabloid sting | Video 11:16am EDT Shares mostly lower on euro worries | Video 11:20am EDT Australia expels Israeli diplomat over Dubai hit 6:43am EDT U.S. reverses stance on treaty to regulate arms trade 14 Oct 2009 BP hopes for oil well "top kill" success | Video 11:12am EDT WRAPUP 6-Two Koreas snarl at each other, tensions rise 7:20am EDT China holds door open a crack to U.S. on yuan | Video 7:53am EDT Jamaica declares emergency in capital after attacks 23 May 2010 Obama tells military: prepare for North Korea aggression 2:05am EDT U.S. reverses stance on treaty to regulate arms trade 14 Oct 2009 U.S. drops criminal probe of AIG executives 22 May 2010 Australia expels Israeli diplomat over Dubai hit 6:43am EDT Study finds big decrease in global child mortality 11:20am EDT China holds door open a crack to U.S. on yuan | Video 7:53am EDT IBM to buy AT&T's Sterling Commerce for $1.4 billion 11:20am EDT UK doctor at heart of vaccine row banned from practice 11:32am EDT Shares mostly lower on euro worries | Video 11:20am EDT Analysis Oil spill's consequences rise for Obama President Barack Obama has prevented the BP oil spill from becoming his own Katrina-like nightmare so far, but the political and policy consequences of the disaster are likely to increase as the oil spreads. Full Article Video: Underwater footage shows oil gush Iran urges skeptical powers to accept atom swap offer Sylvia Westall VIENNA Mon May 24, 2010 11:35am EDT Factbox Factbox: Text of Iran letter on nuclear fuel swap offer 11:20am EDT Related News Iran says any Western gasoline boycott would fail 8:54am EDT Iran holy city ups fine for unveiled women 8:58am EDT Iranian President Mahmoud Ahmadinejad attends a news conference as he arrives at Tehran's International Mehrabad Airport May 5, 2010, after a trip to attend the Nuclear Non-Proliferation Treaty Review Conference at the United Nations Headquarters in New York. Credit: Reuters/Morteza Nikoubazl VIENNA (Reuters) - Iran outlined to the U.N. nuclear watchdog on Monday a deal to give up some of its enriched uranium but diplomats said the gesture would have no effect on a push to widen sanctions against Tehran over its atomic activity. World | Politics Western powers see the pact, reflecting one Iran backed out of six months ago, as overtaken by events including escalating enrichment by Tehran. Along with Russia and China, they have drafted a fourth U.N. sanctions resolution against Iran. Iran has threatened to ditch the plan if it is hit with another resolution, envisaged for adoption next month. The proposal to swap low-enriched uranium (LEU) for fuel to run an Iranian medical research reactor, aimed at allaying fears Iran is trying to amass fissile material for nuclear weapons, was agreed last week by Tehran with Turkey and Brazil. Some diplomats say prospects for the deal look bleak unless Iran stops enriching uranium to higher levels, a process it started in February stoking Western fears it ultimately aims to produce bomb-grade material. Iran says its higher enrichment is to produce fuel for the reactor at the center of the swap deal. In a letter handed to the head of the International Atomic Energy Agency (IAEA) on Monday, Iranian nuclear program chief Ali Akbar Salehi said he expected a "positive response" and that negotiations could lead the way to a written agreement. But a senior big power diplomat said Iran's letter would have no impact on the sanctions deliberations and added that Brazil and Turkey were not actively participating in discussions on the draft resolution. As in October, Iran has agreed to transfer 1,200 kg (2,646 lb) of LEU -- enough for an atom bomb if enriched to high purity -- abroad in return for special fuel rods to replenish the stocks of its medical isotope reactor. The IAEA said agency chief Yukiya Amano had passed on the letter to the United States, France and Russia to consider. The three countries are parties to the original fuel swap pact brokered by Amano's predecessor, Mohamed ElBaradei, last October but which stumbled on subsequent Iranian demands for wholesale amendments. Salehi accused the other parties to the deal of imposing "unjustified conditions" which held up progress, according to a copy of the letter obtained by Reuters. TURKEY AS MIDDLEMAN IN FUEL SWAP Under the deal Iran's LEU would be kept in a third country -- Turkey -- under IAEA supervision, still officially Iranian property, until Tehran received the fuel rods. Previously the LEU was to be sent to Russia and France for processing, with the fuel rods provided to Iran around a year later. World powers have voiced doubt about the value of the new offer since 1,200 kg no longer represents the bulk of a stockpile that has grown significantly since then. That means Iran could still be left with enough for a nuclear warhead. Iran has also started refining uranium to a higher level. "They say the higher enrichment is to make fuel for the reactor. Why would they continue to do this if they get the fuel?" a Western diplomat said. "If they carry on like this then I would be very surprised if this fuel deal goes anywhere." Turkey and Brazil -- both currently non-permanent members of the Security Council -- have urged a halt to talk of further sanctions because of the deal. But Western powers see it as an Iranian stalling tactic to derail more biting sanctions. Iran's envoy to the IAEA, in remarks unlikely to defuse Western suspicions, made clear the fuel swap would not restrict escalating uranium enrichment in Iran in any way. "This is not the issue," Ali Asghar Soltanieh told Reuters by telephone. "We expect (this offer) to be realized as soon as possible," he said in a message to France, Russia and the United States. Turkey said the letter was "positive and constructive." "We expect the recipients of the letter to show a similar attitude," a foreign ministry spokesman told the Anatolian news agency. Israel's deputy prime minister Dan Meridor said the deal could be a sign Tehran is feeling pressure but added that it may also be a trick. The new, extended sanctions would target Iranian banks and call for inspection of vessels suspected of carrying cargo related to Iran's nuclear or missile programs. Iran has been under sanctions since 2006 over its refusal to suspend enrichment -- technology that can produce fuel for electricity or for atomic bombs -- and open up entirely to IAEA inspections and investigations. (Additional reporting by Robin Pomeroy in Tehran, Daren Butler in Istanbul, Douglas Hamilton in Jerusalem and Louis Charbonneau at the United Nations; Editing by Mark Heinrich) World Politics Comments See All Comments (1) | Post Comment May 24, 2010 11:21am EDT IMO, it’s not a step forward, but more of a feint to the side. Iran has a lousy history of keeping it’s agreements on this issue. The_Traveler Report As Abusive See All Comments (1) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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