Nov. 26 (Bloomberg) -- Russian officials are in contact with the incoming Obama administration, urging it to normalize relations with Iran and reach an agreement over its disputed nuclear program.

Russia is hoping that “the new administration understands that there is no alternative to the political process and dialogue at all levels,” Deputy Foreign Minister Sergei Ryabkov said today in an interview with Bloomberg Television in Moscow. Asked if Obama would have to normalize ties with Iran to reach a nuclear agreement, he replied: “Yes, absolutely.”

Bypassing the outgoing Bush administration, Russian officials have approached aides to Obama, 47. The president- elect takes office Jan. 20. “We are doing it through our embassy in Washington D.C. and our contacts with people who are around Barack Obama,” said Ryabkov.

The U.S. severed diplomatic relations with Iran after Islamic students seized the U.S. embassy in Tehran in 1979 and held 52 Americans for 444 days. Obama has pledged to pursue “direct diplomacy without preconditions” with Iran, which is suspected of seeking nuclear weapons by the U.S. and its European allies.

Russia has refused to back a fourth round of United Nations sanctions to pressure Iran over its nuclear activities, arguing that they would be counterproductive.

Russian-Built Plant

Russia, which is close to completing the Persian Gulf state’s first nuclear reactor, says there is no evidence of a weapons program. Iran has rejected UN demands to stop enriching uranium, which can be used to fuel a power station or form the core of a bomb. The oil-rich nation says it is developing nuclear power to generate electricity for a growing population.

The Bush administration refused to hold high-level talks with Iranian leaders until they agree to suspend uranium enrichment.

A letter of congratulations from Iranian President Mahmoud Ahmadinejad to Obama was a “welcome sign” of Iran’s intentions to turn a new page in its relations with the U.S, Ryabkov said.

“The very fact that the Iranians made this move and took the opportunity to send this message is a welcome sign of their open mindedness, but definitely also a reflection to some degree of their expectations with regard to the change of team in Washington D.C.” he said.

Obama responded with caution to the letter, saying Iran’s potential development of a nuclear weapon is unacceptable.

Incentives

World powers have offered an incentive package to Iran with economic benefits such as wider trade and investment if it freezes enrichment and opens its program to international scrutiny. Iran has so far rebuffed the proposal, which is backed by the permanent UN Security Council members -- the U.S., Britain, France, Russia and China -- along with Germany.

The Vienna-based International Atomic Energy Agency, the UN nuclear watchdog, said Nov. 19 that Iran has produced 630 kilograms of low-enriched uranium, enough for a power station or for a weapon if the uranium were converted to bomb grade.

Former U.S. ambassador to the UN Thomas Pickering said the new IAEA report heightens the urgency for finding a way to open U.S. diplomacy with Iran.

Pickering, who serves on the board of the American Iranian Council, a group dedicated to improving relations with Iran, noted in an interview last week that “there’s a huge agenda of differences between us and Iran” that goes beyond the nuclear effort.

Iran worries about the U.S. using force to overthrow the government in Tehran, while the U.S. is concerned about Iran’s support for terrorist groups and its opposition to Israel and Mideast peace talks.

Russia and China, while backing the demand for a suspension of uranium enrichment and three rounds of UN Security Council sanctions, have called for more understanding of Iran’s position.

Russian Foreign Minister Sergei Lavrov in May urged the six powers negotiating with Iran to offer concrete proposals to guarantee its security and ensure it a central role in the resolution of Middle East problems.

To contact the reporters on this story: Henry Meyer in Moscow at hmeyer4@bloomberg.netEllen Pinchuk in Moscow at epinchuk@bloomberg.net

Last Updated: November 26, 2008 08:38 EST