"We don't believe that sanctions will prove effective. Truly, Iran is a big country and a large and diverse economy, even if they (sanctions) could cause some problems," Brazilian Foreign Minister Celso Amorim told reporters.

"What is needed is an initiative, maybe involving the IAEA (International Atomic Energy Agency) director general," he said.

Amorim said a proposal by Iranian President Mahmoud Ahmadinejad for Iran to exchange its uranium for already enriched uranium should be weighed.

"I think the (IAEA) director should go (to Iran) to analyze how this could work, have a look at what difficulties exist. I don't believe this has been done," he said.

Brazil enjoys good relations with Iran, and hosted a visit by Ahmadinejad last year. Brazilian President Luiz Inacio Lula da Silva is to travel to Iran in May.

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