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Report paving way for Iran sanctions relief likely on Jan.16 - source

VIENNA (Reuters) - An IAEA report verifying whether Iran has kept its promises under a nuclear deal Tehran reached last year with world powers is likely to be issued on Saturday, paving the way for sanctions relief, a diplomatic source said on Friday.

Iranian and other officials had previously said they expected the report to come out on Friday.

"Almost all details are ironed out," said another diplomatic source, based in Vienna.

Iranian officials have said Iran's Foreign Minister Mohammad Javad Zarif and the European Union's Federica Mogherini will issue a statement on Saturday or Sunday on the "Implementation Day" of the nuclear deal and the lifting of sanctions.

Under the historic nuclear deal Iran reached with the United States, Russia, China, Britain, France and Germany last July in Vienna, it agreed to dramatically shrink its nuclear programme in exchange for sanctions relief.

Since then, Iran has drastically reduced the number of centrifuges installed at its enrichment sites, shipped tonnes of low-enriched uranium materials to Russia and dismantled the core of its Arak nuclear reactor.

(Reporting By Shadia Nasralla; editing by Ralph Boulton)

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