Iran has indicated to European Union foreign policy chief Javier Solana it will not freeze its most sensitive nuclear work and major powers will consult later this week on sanctions, a European diplomat said yesterday.

Solana has been trying to coax Iran into halting uranium enrichment, which Teheran says will only generate electricity but which the West suspects is aimed at developing an atomic bomb, to avert possible UN sanctions.

"It's clear that's the situation. They cannot accept suspension," a European diplomat familiar with Solana's talks with chief Iranian negotiator Ali Larijani said.

The diplomat said foreign ministers of the major powers were likely to meet in London on Friday or Saturday to assess the outcome after four months of talks and decide on seeking gradual sanctions, targeted on Iran's nuclear program.

In Teheran, a senior Iranian nuclear official had no immediate comment.

Solana spoke by telephone to Larijani on Monday and told journalists afterwards that the conversation was constructive but had not broken the impasse.

The diplomat said no further contact was planned with Larijani before ministers of the United States, Russia, China, Britain, France and Germany meet Solana, although it was not ruled out and lower-level contacts were continuing.

Russia, a major trade partner of Iran and so far strongly opposed to sanctions, had not confirmed whether it would attend the meeting, the diplomat added.

The diplomat said Solana would tell the European Parliament foreign affairs committee on Wednesday that while Iran had moved on some aspects of the conditions for negotiations, it had not moved on "the most critical ones."

"The more we hear about the meetings (between Solana and Larijani), the more we learn that nothing has happened," said another European diplomat, also asking not to be identified in exchange for discussing confidential information.

"For Iran, it seems another undertaking just to gain time."

Solana delivered a package of economic, political and technological incentives to Iran in June, conditional on it suspending uranium enrichment and related activities.

Source: China Daily