Russia said Monday it viewed the European Union's oil embargo on Iran as counterproductive and would continue to defend Tehran against further sanctions over its nuclear programme.

"Unilateral sanctions do not help matters," Russian news agencies quoted Foreign Minister Sergei Lavrov as saying in response to the EU decision.

"We will restrain everyone from making harsh moves. We will seek the resumption of negotiations."

The foreign ministry later added in a separate statement that the sanctions threatened to undermine a new round of nuclear site inspections being planned by UN monitors for the end of the month.

"This pressure will prevent Iran from making any concessions or corrections to its policies," the ministry statement said.

But Lavrov said he was still confident that talks between Iran and the Western powers could be resumed soon.

Tehran has suggested that a new round of talks may be held in Istanbul "in the near future". But Washington has denied holding any "talks about talks".

"Moscow believes that there are fairly firm prospects for the resumption of talks in the immediate future," he said.

"These opportunities exist despite an entire series of recent steps, including those taken by the IAEA director general."

Russia has been fiercely critical of the United Nations' nuclear watchdog for issuing a report in November claiming it had "credible" intelligence showing Tehran's interest in acquiring nuclear weapons.

Lavrov has argued that the report contained nothing new and insisted that any sanctions beyond the four rounds approved already by the UN Security Council only threatened to harm the Iranian people.

"Since we have already adopted collective sanctions in the UN Security Council, everyone should be keeping to that line, adding nothing and taking nothing away from the common position," Lavrov said.

The EU agreed an embargo on Iran's oil exports Monday as well as financial sanctions as the West ramped up pressure on Tehran to press it to return to the negotiating table.

In the toughest action yet to reduce Iran's ability to fund a nuclear weapons programme, the EU ministers are also set to target the country's central bank, ban investment and imports of petrochemicals and the sale of gold, diamonds and other precious metals to Iran.

EU says India sets own policy on Iran oil exports
New Delhi (AFP) Jan 24, 2012 - The European Union, which has agreed to an embargo on Iran's oil exports as well as financial sanctions, said Monday it was up to energy-hungry India to decide how it deals with Tehran.

India said last week it was continuing to buy oil from Iran, despite an intensifying US-led campaign to smother Tehran's vital oil exports until it abandons its nuclear programme.

"Our sanctions determine what European countries do. We cannot determine what Indian companies do or do not," Joao Cravinho, the new EU Ambassador to India, told reporters in New Delhi.

After weeks of tough talks on the terms of a ban on Iranian crude, ambassadors of the the 27 EU nations reached a political agreement earlier on Monday over sanctions against Iran. Iran sells around 20 percent of its crude to EU nations, with Greece, Spain and Italy the top buyers.

Asked about the possible impact on India-EU relations in the wake of sanctions on Iran, Cravinho replied: "The EU will always respect the position taken by Indian authorities."

"Obviously, EU sanctions are for the European Union," he said.

Iran is India's second-largest oil supplier after Saudi Arabia, providing around 12 percent of the fast-growing country's needs at an annual cost of around $12 billion.

Cravinho said the EU sanctions are to "step up pressure" on Iran because the reports coming from International Atomic Energy Agency (IAEA) about its nuclear programme were "very worrisome" for the EU and the rest of the world.

"Conversations with Iran have been taking place for quite a long time," Cravinho said. "There are doubts about the nature of Iran's nuclear programme.

The EU oil embargo agreement provides for an immediate ban on importing Iranian crude and a gradual phase-out of existing contracts between now and July 1, diplomats told AFP.

Iran currently is being paid for oil sales to India through a Turkish bank, the National Iranian Oil Company has said.

India buys about 400,000 barrels per day from Iran.

Turkey, which opposes unilateral sanctions against Iran, is also a major client, purchasing gas in addition to oil.

The West fears Iran is trying to build a nuclear bomb. Tehran insists its nuclear programme is only for civilian use and refuses to abandon its uranium enrichment activities.