The head of the International Atomic Energy Agency (IAEA) said in an interview that sanctions against Iran are ineffective, pointing to advancements in the country's nuclear programme.

The UN nuclear watchdog has a fraught relationship with the Islamic Republic, which has become increasingly close to what is known as breakout ability, which means the potential to make a nuclear bomb. If Iran were to cross the threshold, it would become the second country in West Asia after Israel to possess atomic weapons, potentially setting off another nuclear arms race across the region, with other countries, including the Arabian peninsula countries, following suit. 

"Sanctions aren't working," Rafael Grossi told Bloomberg. "Quite obviously, the country has learned to circumvent them."

Grossi said Iranian officials had assured him they have kept their nuclear activities insulated from sanctions by "retooling domestic production and creating alternative supply chains."

The IAEA director general pointed to Iran's development of five new models of advanced centrifuge – machines that spin at supersonic speeds to separate uranium isotopes – that Iran has developed since former US President Donald Trump withdrew from the nuclear agreement (JCPOA) in 2018 as evidence of Tehran's continued progress.

"The programme has grown enormously, especially since 2018," Grossi said.

In late February, the IAEA said that Iran had increased its stockpile of near bomb-grade uranium by 50% in just three months. Iran's engineers are currently producing the equivalent of one bomb's worth of highly-enriched uranium every 30 days, although IAEA monitors conduct daily inspections in Iran.

Earlier, during a press conference on the sidelines of the IAEA Board of Governors meeting, Grossi called for tangible cooperation with Iran across all areas, including specific locations and enriched uranium levels.

"I always try to have a positive and constructive approach, and if this engagement exists, progress can be made," he said.

Supreme Leader Ali Khamenei earlier said Iran would never create a nuclear bomb, as it was "haram"; however, other countries including Israel have said that Iran should not be trusted and has urged the US Trump administration to double down on US sanctions to exert pressure on the Islamic Republic.

Iran's Permanent Mission to the United Nations and other international organisations in Vienna responded to the director general's reports, saying that Iran has fully complied with its obligations, including the Comprehensive Safeguards Agreement, and has made every effort to enable the agency to effectively carry out its verification activities.

The Iranian mission stated that "continuous political pressure applied by certain countries has reached a stage where even resolved technical issues are subsequently changed in agency reports contrary to what was agreed", adding that "these politically motivated pressures prevent the agency from carrying out its professional and impartial role."

Iran's nuclear progress comes as the country is set to build another nuclear power plant (NPP) with the help of Russia's Rosatom, Newsbase previously reported on February 23. 

Talks between Tehran and Moscow began several months ago, with the Islamic Republic desperate to increase its electricity capacity due to ongoing blackouts across the country during peak demand times. The prospect of new power stations was discussed during a presidential visit to Moscow on January 17 to sign the long-awaited comprehensive strategic partnership deal.