In response to a question about the likely impact of sanctions on Iran's development plans, he said, "By providing incentives for domestic and foreign investment to various countries we have increased our capacity in various domains, including in the petrochemical and oil industries."

    According to the draft agreed on by the six nations, nations and international financial institutions are urged to stop new commitments for "grants, financial assistance and concessional loans" to Iran except for "humanitarian and developmental purposes."

    It also contains measures to impose an embargo on conventional weapons Iran can export but calls on states to "exercise vigilance and restraint" in shipping any heavy weapons to Iran.

    Meanwhile, a mandatory travel ban has been dropped and instead restraint was added. The draft calls on states to "exercise vigilance and restraint" in barring travel by Iranian officials engaged in or directly associated with sensitive nuclear activities or nuclear weapon delivery systems.

    In regard to this issue, the draft contains an annex which expands the list of people included in the resolution adopted last December.

    It also decides to extend an assets freeze to additional groups,companies and individuals engaged in or supporting sensitive nuclear activities or development of ballistic missiles.

    The UN Security Council passed a resolution on Dec. 23, 2006, asking Iran to suspend uranium enrichment in 60 days. However, Iran has failed to do so and claimed its nuclear program is for civilian purposes only.

    On Feb. 22, IAEA chief Mohamed ElBaradei said in his report to the nuclear watchdog as well as to the UN Security Council that Iran had refused to suspend its uranium-enrichment related activities as demanded by the UN Security Council.

    The U.S. later demanded that the UN Security Council take tougher measures to force Iran to halt its uranium enrichment program.

    Washington has long accused Tehran of trying to develop nuclear weapons under the cover of a civilian program, a charge that Iran denies.