IAEA Cuts Aid to Iran

"It is a substantive measure ... as aid is a valuable instrument for Iran," said a senior official close to the International Atomic Energy Agency.

The United Nations Security Council on Dec. 23 imposed sanctions on Iran for continuing to enrich uranium and called for cuts in the IAEA's aid to the Iranian nuclear program.

Out of 55 national and regional projects that the IAEA has with Iran, 22 of them, equal to 40 percent, were either totally or partially frozen, said the confidential report, a copy of which was obtained by the AFP news agency.

Though the measures have been taken, the IAEA's 35-nation board of governors could alter them when it reviews the report in a meeting in Vienna starting March 5.

U-turn on last-minute cancellation

Meanwhile, Iran's top nuclear negotiator decided he did want to attend a weekend meeting of world leaders in Munich.

Ali Larijani had called off a trip to Europe to discuss the crisis over his country's atomic ambitions after saying he would attend earlier in the week.

Klaus Treude, a spokesman for the conference, said he had no details on why Larijani had changed his mind.

Before canceling for what Iran's German embassy said were "health reasons," Larijani had been scheduled to hold talks with German Foreign Minister Frank-Walter Steinmeier and EU foreign policy chief Javier Solana had agreed to meeting the Iranian envoy. It remained unclear how many of those meetings would still take place.

A diplomat close to the International Atomic Energy Agency (IAEA) had earlier said European states would be seeking in Munich to use informal contacts with Larijani to get Iran "to come up with some realistic, achievable proposals" to meet the UN demands.

Iran rejects a UN Security Council resolution of Dec. 23, which imposed limited sanctions to force it to stop enriching uranium.

A time-out

Larijani had also planned to meet IAEA head Mohamed ElBaradei on Friday.

ElBaradei proposed in January a "time-out" in the confrontation over Iran's nuclear ambitions in which Iran would suspend enrichment and the United Nations would hold off on sanctions.

Uranium enrichment uses centrifuges to make fuel for civilian nuclear reactors but can also be used to make material for bombs. It is at the heart of US charges that Iran is hiding work to develop nuclear weapons. Tehran insists its program is peaceful.

Iran still a topic in Munich

Often dubbed the "Davos of the security world," the 43rd Munich Conference on Security Policy will be held from Feb. 9 to 11.

Top-ranking politicians including Russian President Vladimir Putin, German Chancellor Angela Merkel and US Secretary of Defense Robert Gates will also be attending the weekend meeting, where Iran's nuclear plans are among the key topics.