MOSCOW, March 17: Moscow's plan to complete an atomic reactor in Iran in defiance of Washington has run into obstacles, a key nuclear official said on Wednesday.

Washington's criticism of Moscow's nuclear ties with Tehran and disagreements between Iran and the International Atomic Energy Agency (IAEA) have already prompted industry insiders to say Russia may kill off the 800 million dollars project in Bushehr.

Andrei Malyshev, head of Russia's Nuclear Safety Inspectorate, cited logistical problems for stalling the project. "The problem has to do with additional equipment Iran needs to buy," Itar-Tass news agency quoted him as saying.

"Part of the equipment required to finish construction (of the Bushehr nuclear plant) has to be bought in Europe, where there is a ban on sales of such equipment to this country."

Mr Malyshev's remarks were the first official indication the project was off track since Russia's top atomic official pulled out of a crucial trip to Iran this month.

US President George Bush has made fighting black-market trade in nuclear technology a key priority, and wants Russia to sign up to an anti-proliferation initiative at the summit of the Group of Eight nations in June.

Iran's embassy in Moscow confirmed the project had hit an impasse: "Construction work at Bushehr has not been stopped altogether. But unfortunately it's being delayed," said a senior diplomat.

The first generating unit of the 1,000-megawatt plant was originally due to have begun full operation last year. But, as months of negotiations between Moscow and Tehran dragged on, the launch was rescheduled to 2006. Experts say the start-up could be delayed further, if not ditched altogether.

TOUGH STANCE: First signs the Kremlin could be taking a much tougher stance on Iran emerged last year when Russia used the leverage of the uncompleted Bushehr project to persuade Tehran to accept stricter UN inspections.

The foreign ministry shed little light on its closed-door dealings with Iran on the matter. Analysts say the recent appointment as foreign minister of Sergei Lavrov - Russia's envoy to the United Nations for a decade - could make Russian foreign policy more sensitive to Western security concerns.

"Russia's position on Iran has not changed," Mr Lavrov said on Wednesday at his first briefing since he was appointed. "We stand for the clarification and settlement of all questions linked to Iran's nuclear activities, and we call on Tehran to have full and transparent cooperation with the International Atomic Energy Agency."

Sources at IAEA have said that for the time being it was unlikely Russia would resume work at Bushehr until Iran convinces the agency its nuclear programme is peaceful.

"Today's comments by Malyshev are just an attempt by the Russians to cover up the real nature of things," said Radzhab Safarov, a respected Iranian expert based in Moscow. "It's a political game Russia plays with an aim to use Bushehr as a bargaining chip in its dealings with the West." -Reuters