International Atomic Energy Agency chief Mohamed ElBaradei in Vienna. (AFP)

Vienna, March 6 (Reuters): The International Atomic Energy Agency chief said today a deal to defuse a standoff over Iran’s nuclear aims was still feasible and diplomats outlined a compromise that would let Tehran pursue limited atomic research.

Mohamed ElBaradei cited a surge of diplomacy in which Iran has offered not to pursue industrial-scale uranium enrichment for up to two years.

He was speaking before debate on Iran at an IAEA board meeting that could presage UN Security Council action.

Iran may agree to extend that moratorium if it is permitted to run a small-scale enrichment research programme, said a diplomat close to talks between Iran and the EU.

Iran’s insistence on doing enrichment research has been a red line for the West, eager to ensure Tehran does not acquire technology that can be used for atom bombs. The Islamic Republic says it seeks only nuclear-generated electricity, not weapons. “I am still very much hopeful that in the next week or so an agreement could be reached,” ElBaradei said, while acknowledging that Russia’s proposal to enrich uranium for Iran had snagged on Tehran’s determination to purify nuclear fuel itself.

Javad Vaeedi, deputy secretary of Iran’s national security council, highlighted that obstacle when he said that enrichment “research and development” in Iran was irreversible. “Iran is ready to compromise on the period of suspension (of large-scale enrichment) if it can keep its nuclear research activities,” the diplomat close to the Iran-EU talks said.

On Friday, Iran said it could delay industrial-scale enrichment for up to two years, but the EU countered with a demand for a 10-year moratorium on all enrichment activity.

“The (IAEA) board of governors, EU3 and Russia have made clear that there needs to be a suspension of these enrichment capabilities and ... a prolonged period of time necessary to restore confidence. Two years is not a prolonged period of time,” a US state department official said.

A senior official close to the IAEA, who asked not be named, said trying to distinguish between research work and productive enrichment was like “trying to draw a line in water”.

However, EU diplomats said Russia and ElBaradei are pushing the West to let Iran continue small-scale enrichment research under IAEA surveillance as a face-saving solution. The Security Council could desist from any action for the time being if the proposal won agreement, one diplomat said.

Of the three leading European powers, Germany is the one that “could most live with a pilot enrichment plant in Iran,” said a diplomat.