"Both sides underlined the need for timely construction of the atomic power station at Bushehr," the statement said.

They also discussed cooperation in the transport and arms sectors, the statement said.

Russia says it is close to completing the decades-long project to build Iran's first nuclear power station at Bushehr, for which Moscow has already shipped nuclear fuel to the Islamic republic.

The United States has dropped earlier objections, conceding that the power plant will allow Iran to have civilian nuclear power without needing to process nuclear fuel itself.

However the West continues to fear Iran's nuclear ambitions, suspecting Tehran is developing a covert weapons programme. Iran denies such claims.

Russia, a permanent member of the United Nations Security Council, has been cautious about the Western accusations but has nonetheless approved sanctions against the Islamic republic.

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