Iran, Turkey, and Brazil announced Monday, May 17, that they have reached an agreement under which Iran will send most of its stock of low-enriched uranium (LEU), which is enriched at 3.5 percent, to Turkey to be stored and safeguarded there by the International Atomic Energy Agency (IAEA). In return for the transfer of 1,200 kg of LEU, Iran will receive 120 kg of uranium fuel rods, enriched at 19.75 percent, for the Tehran Research Reactor (TRR). The TRR produces medical isotopes for approximately 850,000 patients. Its fuel, supplied by Argentina, will be finished in about a year. The LEU will be considered Iran’s property until it receives the fuel for the TRR.

Brazil’s leftist President Luiz Inàcio Lula da Silva announced a few weeks ago that he would travel to Tehran to help resolve the standoff between Iran and the United States and its allies. The talks also involved Turkish Prime Minister Recep Tayyip Erdogan.

The United States appeared unhappy with the mediation by Turkey and Brazil, both currently non-permanent members of the United Nations Security Council. Secretary of State Hillary Clinton called Davutoglu and tried to persuade him to abandon the initiative. She publicly predicted that the three-way effort would fail, declaring, “Every step of the way has demonstrated clearly to the world that Iran is not participating in the international arena in the way that we had asked them to do.” But it appears that while Clinton was making this statement, her boss, President Barack Obama, had quietly encouraged Turkey to proceed.

Once it appeared that a deal was possible, a Turkish delegation rushed to Tehran. Intense negotiations took place between the three parties, with Iran’s side led by Ahmadinejad, Foreign Minister Manouchehr Mottaki, and chief nuclear negotiator Saeed Jalili. President da Silva called the resulting agreement a “victory for diplomacy.”

The official text of the statement announcing the agreement follows:

Having met in Tehran, Islamic Republic of Iran, the undersigned have agreed on the following declaration:

1. We reaffirm our commitment to the Treaty on the Non-Proliferation of Nuclear Weapons and in accordance with the related articles of the NPT, recall the right of all State Parties, including the Islamic Republic of Iran, to develop research, production and use of nuclear energy (as well as nuclear fuel cycle including enrichment activities) for peaceful purposes without discrimination.

2. We express our strong conviction that we have the opportunity now to begin a forward looking process that will create a positive, constructive, non-confrontational atmosphere leading to an era of interaction and cooperation.

3. We believe that the nuclear fuel exchange is instrumental in initiating cooperation in different areas, especially with regard to peaceful nuclear cooperation including nuclear power plant and research reactors construction.

4. Based on this point the nuclear fuel exchange is a starting point to begin cooperation and a positive constructive move forward among nations. Such a move should lead to positive interaction and cooperation in the field of peaceful nuclear activities replacing and avoiding all kinds of confrontation through refraining from measures, actions and rhetorical statements that would jeopardize Iran’s rights and obligations under the NPT.

5. Based on the above, in order to facilitate the nuclear cooperation mentioned above, the Islamic Republic of Iran agrees to deposit 1200 kg LEU in Turkey. While in Turkey this LEU will continue to be the property of Iran. Iran and the IAEA may station observers to monitor the safekeeping of the LEU in Turkey.

6. Iran will notify the IAEA in writing through official channels of its agreement with the above within seven days following the date of this declaration. Upon the positive response of the Vienna Group (US, Russia, France and the IAEA) further details of the exchange will be elaborated through a written agreement and proper arrangement between Iran and the Vienna Group that specifically committed themselves to deliver 120 kg of fuel needed for the Tehran Research Reactor (TRR).

7. When the Vienna Group declares its commitment to this provision, then both parties would commit themselves to the implementation of the agreement mentioned in item 6. Islamic Republic of Iran expressed its readiness to deposit its LEU (1200 kg) within one month. On the basis of the same agreement the Vienna Group should deliver 120 kg fuel required for TRR in no later than one year.

8. In case the provisions of this Declaration are not respected Turkey, upon the request of Iran, will return swiftly and unconditionally Iran’s LEU to Iran.

9. We welcome the decision of the Islamic Republic of Iran to continue as in the past their talks with the 5+1 countries in Turkey on the common concerns based on collective commitments according to the common points of their proposals.

10. Turkey and Brazil appreciated Iran’s commitment to the NPT and its constructive role in pursuing the realization of nuclear rights of its member states. The Islamic Republic of Iran likewise appreciated the constructive efforts of the friendly countries Turkey and Brazil in creating the conducive environment for realization of Iran’s nuclear rights.

Turkish Foreign Minister Davutoglu said the new deal meant Iran was willing to “open a constructive road. There is no ground left for more sanctions or pressure.” The agreement appears to be nearly identical to a U.N.-drafted plan that the United States and its allies have been pressing Iran to accept since October 2009. They have expressed the fear that Iran would accumulate enough LEU to enrich to the 90 percent level needed to produce a nuclear weapon, despite the absence of any evidence that the Islamic Republic intends such production.

It remains to be seen whether Washington and its allies will declare satisfaction with the Tehran agreement, even though Tehran appears to have given up several of its original demands for the nuclear exchange.

Iran gave up its earlier demands that the swap be simultaneous and take place in Tehran. It had also demanded that the exchange take place in several stages, rather than all at once. The only major difference between the announced agreement and last October’s is that the new one stipulates that if Iran does not receive the fuel rods for the TRR within a year, Turkey must return the LEU.