US bans its arms firms over Iran sales

Russia said today the US State Department had imposed sanctions on two state-owned Russian arms firms, export agency Rosoboronexport…

Russia said today the US State Department had imposed sanctions on two state-owned Russian arms firms, export agency Rosoboronexport and warplane maker Sukhoi, for selling arms to Iran.

"This is a clearly illegitimate attempt to make foreign companies work by internal American rules," the Russian ministry said in a statement. It said the sanctions had been imposed under a US law which penalises companies for working with Iran in the sphere of weapons of mass destruction.

Iran and Russia signed a $1 billion defence deal in December, Russian media said at the time.

Russia agreed to supply TOR-M1 ground-to-air missile systems to the Islamic Republic and also agreed to modernise its air force. Russia is also building an atomic power station at Bushehr on Iran's Gulf coast.

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"These sanctions, which the US unilaterally imposes on other countries and their organisations, are an obvious political and legal anachronism," the ministry said.

Sukhoi is developing the Russian Regional Jet (RRJ) with US firm Boeing. The statement said the sanctions would stop US companies from working with the two Russian firms. "The US is punishing its own companies, taking away their possibilities to cooperate with leading Russian companies," the ministry said.