The agreement signed by senior Russian and Iranian nuclear officials in Moscow represents a small victory for Iran, which insists its nuclear efforts are peaceful and aimed solely at generating electricity.
Iran says it needs enrichment to produce fuel for electricity-generating nuclear reactors but it can also create weapons grade material and the United States and other nations have accused Iran of seeking to develop nuclear weapons.
Russian news agencies reported today that Sergei Shmatko, head of the state-run company Atomstroiexport, and Mahmoud Hanatian, vice president of Iran's Atomic Energy Organisation, signed an additional protocol setting out a time frame for starting up the US$800 million (A$1.07 billion) Bushehr nuclear plant - Iran's first.
"The document provides for supplying Russian fuel for the atomic energy plant in March, physical startup in September 2007 and electric generation by November 2007," Mr Hanatian said.
About 80 tonne of fuel will be supplied to Iran. Spent fuel will be shipped back to Russia, however Iran resisted Russia's proposal to conduct all its uranium enrichment on Russian soil.