Russia could build a second reactor at Iran’s Bushehr nuclear power plant in exchange for Iranian oil, the Iranian ambassador to Moscow said in remarks published on Monday.

Russia could build a second reactor at Iran's Bushehr nuclear power plant in exchange for Iranian oil, the Iranian ambassador to Moscow said in remarks published on Monday.

Russia could also supply Iran with trucks, railroad tracks, mini-refineries or other goods to pay for the oil, ambassador Mehdi Sanaei told the daily Kommersant, under a deal Reuters revealed was being negotiated last month.

In an interview published a day before the six powers including Russia resume talks with Tehran on a nuclear deal, Sanaei confirmed Russia and Iran were discussing supplies of "a few hundred thousand barrels per day".

"Iran could use some of the proceeds (to pay for) the construction by Russia companies of a second unit at the nuclear power plant in Bushehr," he said. Russia built the first reactor at Bushehr, Iran's sole nuclear power plant.

Sanaei said it was possible the oil deal, and a broad memorandum on economic cooperation, could be signed before August. Russian Economy Minister Alexei Ulyukayev is to visit Iran in April for talks on trade.

Asked what Russia could supply in exchange for the oil, Sanaei said the sides were discussing a number of possibilities including the construction of small oil refineries, Russian investment in gas fields and supplies of electricity.

In addition to the possibility of Russia building a second reactor at Bushehr, he said Tehran was interested in supplies of heavy trucks or their assembly in Iran, and other items.

"Iran is interested in buying a huge amount of railroad tracks from Russia, as well as Russian involvement in the electrification of its railways. We are also interested in Russian grain."