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Iran says Russia could build nuclear reactor in exchange for oil

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Russia could build a second reactor at Iran's Bushehr nuclear power plant in exchange for Iranian oil, the Iranian ambassador to Moscow said in remarks published on Monday.

Reuters reported last month that Iran and Russia were negotiating to swap up to 500,000 barrels of oil per day for goods in a deal that would undermine Western efforts to maintain economic pressure on Tehran while global powers seek to curb its nuclear programme.

"Iran could use some of the proceeds (to pay for) the construction by Russian companies of a second unit at the nuclear power plant in Bushehr," ambassador Mehdi Sanaei told the daily Kommersant. Russia built the first reactor at Bushehr, Iran's sole nuclear power plant.

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