Russia and the International Atomic Energy Agency (IAEA) will jointly establish a nuclear fuel reserve bank, in order to meet the demand of developing countries for peaceful use of nuclear energy, said the IAEA on Friday.

It will be the first nuclear reserve bank in the world, providing low enriched uranium for nuclear reactors at civilian level, said the agency.

Rosatom's head Sergei Kirijenko and IAEA Director General Yukiya Amano would sign relevant agreements on the creation of the nuclear fuel reserve bank.

Although the plan has met with opposition from some developing countries, the Board of Governors of the IAEA gave greenlight to the project at a conference held in November last year.

The IAEA explained that the plan could improve supervision of nuclear safety and prevent the proliferation of nuclear technology and material for military purposes. The agency expected that this measure can induce some countries to give up enriching their own uranium.

According to earlier reports, Russia will with the IAEA's support establish a nuclear center in Angarsk, near the city of Irkutsk in Siberia, to produce nuclear fuel at civilian level. The price of the nuclear fuel would then fluctuate in line with market conditions.

The bank will support countries such as Vietnam, Indonesia and the UAE, which plan to build their own nuclear power stations.

Besides, Iran may also be included in the list, if it gives up its plans for enriching uranium or puts it under the full control of the IAEA.