Exclusive: Iran offers nuke fuel deal

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Gary Samore waits for a meeting.
It has been suggested that NSC nuclear czar Gary Samore and his shop and the U.S. mission to the IAEA in Vienna would be best placed to handle talks about a deal. AP Photo

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There are signs that negotiations with Iran over a nuclear fuel swap have resumed despite the expiration of the end-of-year deadline for a deal set by President Barack Obama.

While the Obama administration has stepped up talk of expanding sanctions on the regime’s Revolutionary Guards Corps, Iranian news reports and U.S. official sources say that Iran has recently returned a formal counter offer to swap low enriched uranium, or LEU, in exchange for nuclear fuel cells produced in the West.

The proposal comes as Iranian news reports say that the Iranian foreign ministry has announced that it is giving the international community two months to consider its fuel swap proposal before undertaking the higher enrichment for its nuclear medical program itself.

A U.S. nonproliferation hand confirmed Sunday that Iran had offered a formal response in late December or early January. While the Iranian fuel-swap response was said to have been conveyed by the highest levels of the Iranian government, U.S. officials contacted Sunday gave no public indication that they have any interest in the counter-offer.

“The Iranians have been saying different things for weeks, but what matters is whether they will accept the IAEA's proposed TRR deal, which they agreed to in principle on October 1 but then walked away from,” an administration official said. “They know what they need to do to satisfy the international communities concerns and to date they have not done so.”

The Tehran Research Reactor proposal, or TRR, calls on Iran to immediately send 1,200 kg of its LEU to Russia, and France would in return supply Iran with nuclear fuel cells for medical use. The plan would have left Iran without enough fissile material to enrich for use in a nuclear weapon, putting time back on the clock for international negotiations on the nation’s nuclear program.

Iran’s counter-offer also proposes sending the 1,200 kg abroad – probably to Turkey – but in batches, starting with a first shipment of 400 kg. The offer seems to establish Iran’s willingness to export the LEU out of the country, which would satisfy a key Western condition.

“My understanding is that they [U.S. officials] have not given up on the TRR deal,” one Washington Iran hand said on condition of anonymity Sunday. “They need it. So if there was a chance of salvaging something …. They still want to get a deal.”

“As long as under no situation over the next year there is enough LEU to produce a bomb, whether Iran ships out the fuel in one, two or three batches, is just a logistical issue,” he said.

NSC nuclear czar Gary Samore and his shop and the U.S. mission to the IAEA in Vienna would be best placed to handle talks about a deal, it was suggested.

One source told POLITICO that an agreement between Iran and the “P5+1” - as the group composed of China, France, Germany, Russia, the United Kingdom and the U.S. is known - could be announced in “the very near future.”

While Iranian negotiators tentatively approved the TRR deal in October, the proposal came under fire in the Iranian parliament, and Iran hadn’t until now formally replied to the offer.

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