Russia signs $1 billion arms deal with Iran

moscowtimes: Reports that Russia had signed a $1 billion arms deal with Iran surfaced on Friday, just as a senior U.S. State Department official was in Moscow to discuss counterterrorism measures.

Media reported that Russia last week had agreed to supply Tehran with the Tor-M1 air defense system, upgrade Russian-made fighter jets and deliver patrol boats in a deal that would mark the revival of large-scale arms sales to the Islamic republic.

Russia will deliver up to 30 short-range Tor-M1 air defense systems to Iran between 2006 and 2008, Interfax reported, citing an unidentified defense industry source.

On Saturday, the Russian Foreign Ministry indirectly confirmed the agreement, characterizing the weapons as "exclusively defensive" and in compliance with international agreements.

While they agreed that the tactical Tor-M1 system would pose no threat to Iran's arch-enemies -- Israel and the United States -- defense analysts said the anti-aircraft system would be well-positioned to ward off an air attack on the Bushehr nuclear reactor, which Russia is helping to build. Washington suspects that Iran is using its civilian nuclear program as a guise for developing nuclear weapons. Read more