Russian Foreign Minister Sergey Lavrov said his country "will not support excessive sanctions against Iran," and added that the draft resolution has been softened at Moscow's behest, including narrower restrictions on officials' travel.

European and US officials who spoke on condition of anonymity because of the sensitivity of the talks said Tuesday that Moscow had bluntly told Tehran it would not ship fuel for the Russian-built Bushehr nuclear power plant in southern Iran until Tehran freezes its uranium enrichment program.

Lavrov denied that.

"It's not the first time that we are seeing such an unscrupulous approach aimed at driving a wedge between us and Iran," he told lawmakers in the lower house of parliament.

Russia has said plans to supply fuel for Bushehr this month were called off because of Iranian payment.

Still, Burns spoke favorably of Russia's decision, saying it was akin to telling Iran "this won't be business as usual."

Iranian President Mahmoud Ahmadinejad has said he will travel to the United Nations if the Security Council decides to vote on sanctions. In his own New Year's address, he accused world's powers of waging "psychological warfare ... to block our nation's progress."

Khamenei said sanctions would backfire and only further motivate Iran to develop nuclear power without outside assistance.

"Sanctions may even, under circumstances, come to our benefit since they create more motivation for us," he said. "Western governments don't agree with Iran possessing nuclear power. Let them. Did we ask anybody permission to achieve nuclear power?"

Iran says it needs alternative energy sources for when its oil reserves run out.

"Nuclear energy is a must, a necessity in the long term," Khamenei said. "One day oil will dry up. ... The Iranian nation needs nuclear energy for life, not weapons."

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