Russia's Federal Atomic Energy Agency (Rosatom) said on Monday the launch of Iran's Bushehr nuclear power plant, which Russia is building, would be postponed because of Iranian delays in payment.

"The fact is that there is no money, and it is impossible to construct without money," Rosatom spokesman Sergei Novikov was quoted by the Interfax news agency as saying. He said Iran suspended payments on Jan. 17.

"Therefore, our Iranian partners should not be surprised by an extension of the deadline for the launch of the first unit at Bushehr," he said.

Under an agreement reached last September, Russia was to deliver nuclear fuel to Bushehr in March and the power station would begin working in September. Novikov did not say for how long the launch will be delayed.

The announcement came after talks between Russian and Iranian officials last week in Moscow failed to reach agreement on the dispute over funding.

Located in southwestern Iran, Bushehr is the country's first nuclear power station, but work at the plant has been long delayed. Russia and Iran signed a 1 billion-U.S. dollar contract for the construction of the plant in 1995.

Source: Xinhua