Australia could be supplying the nuclear element to Russian reactors as early as next year, and a pact could be signed when Russian President Vladimir Putin visits Australia in September for a summit of the Asia-Pacific Economic Cooperation (APEC) forum.

The announcement follows a similar in-principle deal concluded on Thursday with India, and like that deal has been widely criticised.

But Downer defended the deal, which has been under discussion since April and would see Australia supply uranium for Russia's civil nuclear power industry.

"We should support civil nuclear power programmes in responsible countries with responsible and appropriate protections," Downer told reporters in Adelaide, capital of South Australia state, where there are large uranium reserves.

An agreement struck in 1990 allows Australian uranium to be processed in Russia but if it is then sold on, it must be to other countries which Canberra accepts.

Unlike India, Russia is a signatory to the Non-Proliferation Treaty (NFT) and is one of the five nuclear powers recognised by that agreement.

Downer discounted the possibility of the uranium being sold on to other countries without Australia's knowledge.

"In the same way we have nuclear safeguards commitments with other countries, it would be a breach of international law if they were to try to do that," Downer said.

"I don't think Russia would want to become a rogue state and break international law, it would lead to a collapse in their relations with Australia and probably with an awful lot more countries.

"I don't think there is any danger of that."

Two minor parties, the Australian Greens and the Australian Democrats, have expressed outrage at the deal and that with India, saying the result could be Iran advancing its nuclear ambitions.

Downer dismissed such fears as "scare-mongering" and said Australian uranium would "probably not by the end of the year but into next year" start being used in some of Russia's 30 civil nuclear power stations.

The Australian government was not in talks with any other countries on selling uranium, he said.

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