A nuclear fuel swap deal signed by Iran on Monday "does not answer all of the concerns" raised by Tehran's nuclear programme, the office of EU foreign affairs chief Catherine Ashton said.
"If this reported agreement delivers... of course we welcome such a move," a spokesman for Ashton told AFP.
"This is a move in the right direction but it does not answer all of the concerns raised over Iran's nuclear programme," he added.
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Iran signed an agreement with non-permanent UN Security Council members Turkey and Brazil on Monday to ship 1,200 kilogrammes (2,640 pounds) of its low enriched uranium to Turkey for a later swap for nuclear reactor fuel.
Sanctions 'may continue'
Iran's hardline President Mahmoud Ahmadinejad said Monday he hoped world powers would enter talks with Tehran following the announcement of the deal.
Western powers led by the United States have for years sought to curb Iran's atomic drive, suspecting the Islamic republic may secretly seek to develop nuclear weapons -- a charge Tehran denies.
They have pursued dual-track diplomacy of engagement and sanctions but have not held any talks with Iran since last October when a UN-brokered deal to ship Iran's uranium abroad was discussed.
A European diplomatic source said the announced deal does not close down the sanctions option.
"This doesn't rule out the need for further sanctions," the diplomat said.
