Russia still supports a diplomatic way to resolve the dispute over Iran's nuclear program, but the possibility of sanctions against Tehran can not be ruled out, said Russian President Dmitry Medvedev Saturday in his address to participants of the conference of the League of Arab States.

"We are convinced that sanction is not an optimal path. But at the same time, such scenario cannot be ruled out," he said.

"We believe that settling of the Iran nuclear problem should be accomplished exclusively by political-diplomatic methods in strict accordance with the UN Charter," Medvedev added.

He stressed that any sanctions "must be well-calculated and not target at Iran's civilian population."

The West accuses Iran of secretly developing nuclear weapons under the guise of a civilian program, but Iran insists its nuclear program is only for peaceful purposes. Russia, which has long said it prefers to resolve the issue through diplomatic means, is showing growing frustration with Iran's refusal to cooperate with the international community.