Officials said talks between Iran and Russia to complete the 1,500-megawatt nuclear power facility have not succeeded. They said Russia has demanded that Iran honor its payment schedule before contractors export nuclear fuel and launch operations at Bushehr.

On March 7, an Iranian nuclear delegation, led by Iranian Atomic Energy Organization deputy director Mohammed Saeedi, met Russian officials to discuss the completion of Bushehr, currently more than four years behind schedule. Officials said Iran has insisted that Russia honor its commitment to deliver nuclear fuel in March and launch reactor operations in September 2007.

But Russia has linked progress on the $1 billion Bushehr project to a resumption of Iranian payments. Officials said Teheran has not provided the stipulated $25 million a month to Russian contractors, led by the state-owned Atomstroiexport.

"The main issue on the agenda of today's meeting is to discuss the crisis situation connected to the lack of funding of the project by the Iranian side," Vladimir Pavlov, responsible for the Bushehr project for Atomstroiexport, said on Wednesday.

In February, Atomstroiexport, which has been teetering on bankruptcy, said the halt in Iranian payments would disrupt the planned launch of Bushehr. Officials said engineers as well as nuclear fuel would not be sent to Iran until payment was resumed.

Atomstroiexport vice president Yevgeniya Neimerovets said Iran has not made any payments since Jan. 17. Neimerovets said the suspension "has put our partners and subcontractors in a very difficult position."

In response, Iran has asserted that it completed more than 90 percent of its financial obligations under the Bushehr project. Teheran has warned that it would dismiss Russian contractors and complete Bushehr by itself.

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