Iran will circumvent international sanctions aimed at halting its controversial nuclear programme, supreme leader Ayatollah Ali Khamenei vowed on Tuesday.

"The enemies of the nation seek to frustrate the people with economic pressures so the people blame the government for them and ties are cut between the government and the people," Khamenei said.

"But the nation and officials will undoubtedly circumvent the sanctions and render them ineffective just as (they have) in the past three decades," state media quoted him as saying in a speech.

Khamenei, who has the final say on all key policy issues, called for the creation of a "really resistant economy" in the face of international pressure, state television said.

Iran's economy is heavily dependent on oil revenues.

On June 9, the UN Security Council imposed a fourth round of sanctions over Iran's controversial programme of uranium enrichment, which many Western states believe may be a covert bid to make a nuclear bomb, a charge Tehran denies.

The United States and European Union have since unilaterally imposed even tougher measures, which contain provisions to penalise Tehran's trading partners.

US sanctions Germany-based bank for Iran trade
Washington (AFP) Sept 7, 2010 - The United States on Tuesday announced sanctions against a German bank accused of handling "billions of dollars worth of transactions" for the Iranian government and of aiding its nuclear program.

The Treasury Department said the Hamburg-based Europaeisch-Iranische Handelsbank was a "key financial lifeline for Iran" that helped proliferate weapons of mass destruction.

The bank is accused of facilitating a series of transactions linked to Iranian weapons programs including a three million dollar transaction for Iran's missile program in league with the Export Development Bank of Iran.

The bank, also known as EIH, will now be banned from the US financial system and US banks will be banned from trading with it.

"EIH has acted as a key financial lifeline for Iran," said the Treasury Department's sanctions tsar Stuart Levey.

"As one of Iran's few remaining access points to the European financial system, EIH has facilitated a tremendous volume of transactions for Iranian banks previously designated for proliferation."

It is the latest round of US sanctions to target Iran's nuclear program, which Washington says is cover for building a nuclear bomb.

Iran says the program is for civilian purposes.

"The United States has closely consulted with the German government in taking today's action against EIH and is aware that the German government is also taking steps under its national authorities," the Treasury Department said.

Russia urges Iran to work with UN nuke watchdog
Paris (AFP) Sept 7, 2010 - Russia urged Iran to allow United Nations inspectors access to its nuclear programme on Tuesday amid a new dispute between Tehran and the International Atomic Energy Agency (IAEA).

"We exhort Iran to prove it is acting in good faith and to respond to the requests by the IAEA," said Russian Foreign Minister Sergei Lavrov, after talks in Paris with his French counterpart Bernard Kouchner.

Moscow has traditionally been a wary ally of Tehran, and has helped the Islamic regime's efforts to develop civilian nuclear power, but has become increasingly frustrated with Iran's defiance of international oversight.

The IAEA -- the UN atomic watchdog -- released a new report on Monday accusing Iran of undermining and delaying a long-running investigation into its nuclear drive by vetoing the nomination of some inspectors.

Earlier this year, Iran banned two IAEA inspectors from entering the country, accusing them of filing a "false report."

The Iranian foreign ministry responded angrily on Tuesday, insisting it has a right of veto over UN personnel granted access to its facilities.

Many in the international community suspect Iran of seeking to develop nuclear weapons behind the facade of its civilian power programme and Tehran has been hit with international sanctions over its failure to negotiate.