US, EU oppose atomic aid for Iran at tense IAEA meet

"Given past board decisions, continued questions about Iran's nuclear programe and the risk of plutonium being diverted to use in a weapon, the United States joins with others who cannot approve this (Arak) project," Gregory Schulte, U.S. ambassador to the IAEA, told the weeklong board session.

Finnish Ambassador Kirsti Helena Kauppi, speaking on behalf of the EU, said technical expertise should be withheld from Arak as it "would involve a significant proliferation risk".

Iran denies intent to derive plutonium from Arak, saying it would produce only radio-isotopes for medical uses, replacing a smaller light-water reactor that predates 's 1979 Islamic revolution and is said by Tehran to be obsolete.

Developing nations locked horns with Western counterparts at the meeting, saying that a rejection of Tehran 's request would set a politicised precedent for withholding technical aid from them for peaceful atomic energy programmes.

Diplomats said most board members wanted to avoid a divisive vote that was likely to lose and blame on Western bullying.