Mr Vladimir Putin said today Russia would continue building a nuclear power station for Iran but that Tehran's nuclear programme had to come under stricter international control.
The Russian president reaffirmed his commitment to the Bushehr power plant in southern Iran - a day after G8 states urged both Iran and North Korea to curb their nuclear programmes.
"We co-operate with Iran, our neighbour, and will co-operate further with Iran," Mr Putin told a news conference at the end of the Group of Eight summit of industrialised countries.
"At the same time we believe the decisive role in non-proliferation must be played by the IAEA [International Atomic Energy Agency]. . . . We will insist that the entire Iranian programme in the nuclear sphere be placedunder the control of the IAEA".
Moscow has in recent weeks responded to longstanding UScalls to stop helping Iran's nuclear development by agreeing to ensure Tehran's programme met requirements of the IAEA, the UN nuclear watchdog.
Mr Putin also praised US President Mr George W. Bush for keeping close ties to Moscow despite major differences over the US-led war in Iraq.