June 30 (Bloomberg) -- Iran’s Guardian Council declared President Mahmoud Ahmadinejad the winner in the disputed June 12 vote, as authorities released some British embassy workers detained over post-election protests.

The council’s secretary, Ayatollah Ahmad Jannati, notified Interior Minister Sadegh Mahsouli in a letter yesterday that it had approved the election results following a random recount of 10 percent of the ballots, the IRNA state news agency reported.

The original tally showing Ahmadinejad won 63 percent of the vote to 34 percent for his leading challenger, Prime Minister Mir Hossein Mousavi, prompted the largest anti- government protests in Iran since the 1979 ouster of the shah by Islamic revolutionaries. Mousavi demanded the election be scrapped because of what he said was bid-rigging.

A Foreign Ministry spokesman, Hassan Qashqavi, said yesterday five of the nine Iranian employees of the British embassy who were detained had been freed, IRNA reported.

Intelligence Minister Gholam Hossein Mohseni Ejei, in comments reported by state-run Press TV, said the embassy had played a key part in the demonstrations “both through its local staff and via media.” The arrests were condemned by the U.K. and the European Union.

Iran’s relations with the West are continuing to worsen, complicating future talks over the country’s nuclear program. The Iranian leadership accuses the U.S. and the U.K. of instigating the violence that followed protests by Ahmadinejad’s opponents, who allege massive ballot-rigging.

Leadership Embattled

Ilan Berman, an Iran expert at the American Foreign Policy Council in Washington, said the embassy arrests were a sign that the Iranian leadership is feeling embattled and would make it harder for the EU to resume nuclear negotiations with Iran.

“This is a visceral move by Iran; it’s not a very smart one,” he said.

Iran ordered two U.K. diplomats to leave the country on June 22, prompting the expulsion of two Iranian diplomats from London. Iran also ordered a British Broadcasting Corp. correspondent out of Tehran after accusations that the U.K. was interfering in Iran’s internal affairs.

Iran’s Supreme Leader Ayatollah Ali Khamenei on June 19 called Britain the “most treacherous” Western nation. He criticized the West over the weekend for making “idiotic remarks” about the presidential election. Qashqavi said yesterday in remarks carried live on state television that an end to diplomatic ties with any country is not on the agenda.

Conditions on Talks

The EU said yesterday the treatment of protesters would determine whether major world powers will re-enter talks on Iran’s nuclear program. A special judicial committee will examine the status of people detained after demonstrations, a judiciary spokesman said.

EU foreign policy chief Javier Solana said in Corfu, Greece, that new nuclear talks are possible “if they are ready and we are ready in view of the outcome.”

European governments are keen to restart negotiations “soon,” offering Iran help with its civilian energy program as long as the country gives up any nuclear weapons ambitions, Solana said.

Iranian authorities have succeeded in largely quelling the protests after using force to keep people off the streets and arresting hundreds of activists. Protesters who defied a ban on opposition rallies since the election have been met with water cannons, tear gas and clubs as security forces dispersed crowds. As many as 17 protesters and eight militiamen have died, according to state-run media.

Neda’s Death

Ahmadinejad asked the country’s judiciary to investigate the slaying of Neda Agha Soltan, a young woman whose death from gunshot wounds became a symbol of the protests after it was captured in a video shown around the world, the state-run Mehr news agency reported yesterday.

Ahmadinejad vowed June 27 to take a tougher approach to the West during his second term, saying the U.S. administration’s criticism of his crackdown on dissent after the election shows its offer of talks on Iran’s nuclear program isn’t genuine.

Iran, the world’s fourth-largest oil producer, says its nuclear program is aimed purely at generating electricity.

To contact the reporters on this story: Ladane Nasseri in Tehran at lnasseri@bloomberg.net; Henry Meyer in Dubai at hmeyer4@bloomberg.net.

Last Updated: June 29, 2009 15:32 EDT