Moscow Slams U.S. Sanctions on Its Military Firms

January 6, 2007
Moscow Slams U.S. Sanctions on Its Military Firms
By REUTERS
Filed at 8:52 a.m. ET

MOSCOW (Reuters) - Russia accused the United States on Saturday of illegally imposing sanctions on some Russian military firms which Washington says were cooperating with Iran and Syria.

``This is by far not the first time the U.S. resorts to illegal attempts to spread its internal legislation on foreign companies and force them to abide by the U.S. rules,'' Russia's Foreign Ministry said in a statement.

It said the U.S. decision was taken on Friday against several private individuals and companies in Russia, including state arms trader Rosoboronexport.

Rosoboronexport, one of the world's biggest arms traders, has recently won control of the Russian firm VSMPO-Avisma, the world's largest titanium producer. It is a key supplier of titanium parts to U.S. aviation giant Boeing and Europe's EADS.

In August Washington slapped sanctions on Rosoboronexport and warplane maker Sukhoi under a U.S. law which penalizes companies for working with Iran in the sphere of weapons of mass destruction.

In November, Washington formally lifted the sanctions against Sukhoi, which is developing the Russian Regional Jet (RRJ) with Boeing.

Moscow said the latest U.S. sanctions against its arms firms were again ``groundless'' and added: ``And yet once again, the United States is embarking on this vicious circle.

``As a result of its politicized actions, the American state also denies itself and U.S. firms the right to cooperate with our advanced companies,'' Russia's Foreign Ministry said. ``In business language, this is called 'lost opportunities'.''

Moscow and Washington have repeatedly clashed over trade policy and Iran in the past few years, with U.S. officials angering Russian President Vladimir Putin over criticism of his democratic record and foreign and energy policy.

Washington maintains Iran is using its civilian nuclear program as cover to develop atomic weapons. It has accused Syria of being a destabilising influence in the Middle East, especially in Lebanon.


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