Nuclear experts in Iran on day of oil embargo vote

By Robin Pomeroy and Hossein Jaseb

TEHRAN (Reuters) - U.N. nuclear inspectors arrived in Iran on Sunday, hoping to shed light on suspected military aspects of Tehran's atomic work, on the day its lawmakers look set to ban oil exports to Europe in revenge for new EU sanctions.

The head of the International Atomic Energy Agency delegation said he aimed to "resolve all the outstanding issues with Iran" over the nuclear program which the West believes is aimed at making weapons but which Iran insists is peaceful.

"In particular we hope that Iran will engage with us on our concerns regarding the possible military dimensions of Iran's nuclear program," IAEA Deputy Director General Herman Nackaerts told reporters before departing from Vienna airport.

That may be a tall order, with Iran insisting its right to peaceful nuclear technology be recognized by skeptical countries which say its uranium enrichment activities - some of which have been moved to a bomb-proof bunker - go beyond what is needed for atomic energy.

Tensions with the West rose this month when Washington and the European Union imposed the toughest sanctions yet in their campaign to force Tehran into making concessions. The measures take direct aim at the ability of OPEC's second biggest oil exporter to sell its crude.

Less than one week after the EU's 27 member states agreed to stop importing crude from Iran from July 1, Iranian lawmakers were due to debate a bill later on Sunday that would cut off oil supplies to the EU in a matter of days.

By turning the sanctions back on the EU, lawmakers hope to deny the bloc a six-month window it had planned to give those of its members most dependent on Iranian oil - including some of the most economically fragile in southern Europe - to adapt.

BUYBACK PROBLEMS

The head of the state-run National Iranian Oil Company (NIOC) said late on Saturday that the export embargo would hit European refiners, such as Italy's Eni, that are owed oil from Iran as part of long-standing buy-back contracts under which they take payment for past oilfield projects in crude.

"The decision must be made at high echelons of power and we at the NIOC will act as the executioner of the policies of the government," Ahmad Qalebani told the ISNA news agency.

"The European companies will have to abide by the provisions of the buyback contracts," he said. "If they act otherwise, they will be the parties to incur the relevant losses and will subject the repatriation of their capital to problems."

"Generally, the parties to incur damage from the EU's recent decision will be European companies with pending contracts with Iran."