Moscow: Russia has delivered the first batch of nuclear fuel for Iran's controversial Bushehr atomic plant, with Moscow saying Tehran had given guarantees of the peaceful nature of its nuclear programme.

The $1 billion Bushehr NPP in southern Iran, being constructed with Russia's help, has faced frequent delays over payment disputes. Iran's first atomic plant has also caused International tensions with the West accusing Tehran of trying to built nuclear weapons, which the latter denies.

Russia's nuclear agency today announced that the shipment of the low-enriched uranium fuel started yesterday and would continue through February 2008.

"Containers with fuel sealed by IAEA inspectors have been delivered to the (Bushehr) site and placed in a special storage facility subject to international safety monitoring," it said in a release.

Spent Russian fuel is to be re-exported for preprocessing and storage, according to the agreement between the two countries.

Russia's Foreign Ministry said the start of nuclear fuel supplies means Iran has laid the foundations to restore trust in its nuclear programme.

"We believe that entirely new conditions have been created, allowing Iran to take steps to restore trust in the peaceful nature of its nuclear programme," the ministry said in a statement.

Source : PTI