http://news.yahoo.com/s/nm/20070106/pl_nm/russia_us_sanctions_dc

Moscow slams U.S. sanctions on its military firms

MOSCOW (Reuters) - Russia accused the United States 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.

The Federal Register, a record of U.S. policy actions, published a State 
Department notice on Friday listing 24 businesses -- including four in 
Russia and others in China, Iran,
Iraq, Malaysia, Mexico,
North Korea, Sudan and Syria -- that it said engaged in actions that 
triggered the sanctions.

The sanctions went into effect December 28, the notice said, and will 
remain in place for two years unless the secretary of state lifts them.

The notice said the 24 incurred sanctions under the Iran and Syria 
Nonproliferation Act by providing materials that could contribute to the 
development of weapons of mass destruction or cruise or ballistic 
missile systems by Iran or Syria.

A call for comment to the State Department was not returned on Saturday.

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 that 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 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 destabilizing 
influence in the Middle East, especially in Lebanon.

(Additional reporting by Deborah Zabarenko in Washington)

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