Czech, under pressure, to bow out of Iran nuke project

LONDON -- Czech appears ready to bow out of a $34 million project to assist Iran's nuclear reactor project at Bushehr.

Western diplomats said protests from NATO countries as well as domestic opposition have forced Prague to freeze plans to supply equipment to the reactor. Western officials have warned Czech that it could face international sanctions if it proceeds with the project.

The Iranian contract was won by ZVVZ Milevsko.

"In view of the sensitive issues of the development of weapons of mass destruction and their proliferation, which have a correlation to the project, the ministry views this case as a risk," Foreign Ministry spokesman Alex Pospisil said.

The only country that has agreed to complete the Bushehr project has been Russia, which is under international sanctions.

The Czech newspaper Lidove Noviny said the government is considering buying ZVVZ Milevsko but a decision has not yet been reached.

Officials said regardless of whether Prague decides to continue with Bushehr, Czech trade with Iran has been increasing. Czech has exported more than $30 million in 1999 and imported nearly $7 million.

For its part, Iran has threatened to reduce relations with Czech if Prague continues to allow the U.S.-financed Radio Free Europe-Radio Liberty to broadcast.