MOSCOW (Agencies) – On Wednesday, Iranian nuclear negotiators, headed by Ali Larijani, the secretary of the Supreme National Security Council, were in a hotel in central Moscow for a third round of talks on Moscow's proposal to carry out uranium enrichment for the Islamic Republic on Russian soil. Larijani held talks with Igor Ivanov, the secretary of Russia's Security Council.

Tehran stuck to its line, saying that even if a deal is struck with the Russians it will not bow to the key demand from its critics -- to drop all efforts to enrich uranium at home.

Iran has already resumed small-scale enrichment at the Natanz facility under the strict supervision of the International Atomic Energy Agency.

On arrival at Moscow's airport, Larijani said Tehran sees no need to stop work on enrichment.

"A moratorium is necessary when there is something dangerous. But all our activities are transparent," Larijani said as quoted by the Associated Press.

Larijani also said Tehran agrees to all inspections by the IAEA, the UN nuclear watchdog agency, if they are conducted in line with international law. "We are not making any extraordinary demands, (but) we insist on those rights that are Iran's due in the IAEA framework," he said, speaking through a Russian translator.

"We agree to IAEA inspections and those international inspections that are lawful."

There is less than a week until a meeting of the IAEA Board of Governors which will discuss its latest report on Iran's nuclear program.

According to Reuters, oil prices rose on Wednesday, partly on traders' concerns the nuclear row could affect Iranian crude supplies.

The previous two rounds involved less senior officials and the higher footing raised hopes Iran was taking the Russian proposal seriously.

"We are optimistic we can agree with our Iranian partners… we think we can come to an agreement that a joint venture on the soil of the Russian Federation will be able to meet Iran's needs fully," Russian President Vladimir Putin told a news conference during a visit to Hungary.

Moscow, Washington and the EU 3 have said Iran returning to a moratorium on enrichment is a non-negotiable precondition of any deal.

Larijani told reporters that a moratorium is unnecessary since “all our activity is transparent and directed towards peaceful nuclear power".

U.S. President George W. Bush, on a visit to Iran's neighbor Afghanistan, said he backed Russia's efforts to find a compromise deal with Tehran.

"And so we've joined with Russia as part of a diplomatic effort to solve this problem," Bush said.

Iranian Foreign Minister Manuchehr Mottaki said there was still room for compromise.

"We are in a position to cooperate, reach a comprehensive compromise with all the parties… We are flexible," he told reporters in Tokyo.

Iran nuclear compromise possible: Lavrov

Russia's foreign minister told Russia Today television Wednesday that a compromise on Iran's nuclear program was possible.

"I am convinced that a compromise that complies with the non-proliferation regime is possible," Lavrov said in an interview with the 24-hour English-language channel.

"Iran should reimpose its moratorium (on nuclear research) and accept Russia's proposal to open a joint venture to enrich uranium on Russian territory," Lavrov said.

"We should do everything it takes to resume the efforts of UN inspectors in Iran," Lavrov said.

"We will also try to explain that Iran's current nuclear fuel needs could be covered by the joint venture," Lavrov said.