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Russia angered by U.S. sanctions move

MOSCOW, Sept. 13 (UPI) -- Russia cried foul Friday, condemning as baseless a decision by the U.S. State Department to impose sanctions on three Russian enterprises over alleged sales of military equipment to countries the United States says sponsor terrorism.

The Russian Foreign Ministry protested the sanctions, imposed against the firms for a one-year period, stressing that international non-proliferation agreements had not been violated.

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The United States has not publicly specified which countries were involved, but Washington's list of states they say sponsor terrorism include Cuba, Iran, Iraq, North Korea, Libya, Sudan and Syria.

"Military-technology cooperation between Russia and these states is absolutely legitimate, and it is of a highly limited character," said Boris Malakhov, a Foreign Ministry spokesman who defended the Russian firms.

The sanctions, imposed against the Tula Design Bureau of Instrument Building, the State Scientific Production Enterprise Bazalt and the Rostov Airframe Plant 168, will include a ban on any U.S. contracts, licenses and permits involving these enterprises.

U.S. Undersecretary of State John Bolton, who completed a trip to Russia, said the sanctions applied to the firms over their sale of lethal military equipment to states supporting terrorism.

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But Malakhov said Moscow was "amazed by the U.S. decision, particularly as it was made by our partner in the international anti-terror coalition."

Spokesmen at all three Russian companies denied any illegal sales, with the Rostov-based firm declaring the sanctions a "hostile move directed against Russia."

The deputy director of the Tula Design Bureau, Vasily Gryazev, accused the United States of trying to sideline a competitor in the lucrative international arms market. The firm is Russia's second-largest arms exporter after state arms company Rosoboronexport, the official Itar-Tass news agency said.

The decision to impose sanctions had been made by the Bush administration three weeks ago but was announced Thursday night.

Washington has been particularly concerned with Russia's continuing cooperation with Iran and Iraq, particularly Russia's participation in the construction of a nuclear power plant for Iran at Bushehr.

The United States fears Iran may gain access to sensitive technology for its nuclear arms program, while Russia maintains the Bushehr plant is a commercial project and that all safety precautions have been met.

Moscow has long-standing, close ties with all seven states the United States has accused of sponsoring of terrorism, and has exported arms and shared military technology with these states in the past.

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