Iran, Russia prepare $2 billion in new arms deals

MOSCOW — No longer burdened by the threat of U.S. sanctions, Iran and Russia are preparing to sign new weapons deals early next year.

Diplomatic sources said the deals could be signed during the visit of Iranian President Mohammad Khatami to Moscow. They said two countries have been discussing an arms deal that could reach $2 billion and include licenses for Iran to produce Russian aircraft and tanks, Middle East Newsline reported.

Having withdrawn from an agreement to end arms sales to Iran, Russia has shipped hundreds of missiles to Teheran which may be used against Israel.

The Israeli Yediot Aharonot daily reported on Friday that Russia has send 325 shoulder-fired SA-16 anti-aircraft missiles to Iran. The SA-16 is regarded as the most effective missile deployed in the former East Bloc and Israeli sources fear that they will be transported to the Hizbullah in Lebanon.

The shipment is part of a deal to export 700 SA-16 missiles to Iran as part of a $1.75 billion contract. Yediot quoted U.S. sources as saying hundreds of missiles have been placed on a Russian train and ship for Iran.

The Interfax News Agency reported that Khatami will probably visit Moscow in the early months of 2001. The agency quoted diplomatic sources as saying that the two countries are already planning the visit.

Russia has withdrawn from a 1995 understanding with the United States that bans Russian arms sales to Iran. The end of the Russian ban takes effect on Friday.

Russian Deputy Prime Minister Ilya Klebanov said Moscow and Teheran will start negotiating new arms deals in the near future. He would not elaborate but stressed that they would not violate any nonproliferation accords signed by Moscow.

Klebanov dismissed the threat of additional U.S. sanctions and said the Clinton administration should first examine weapons deals between NATO countries and Teheran.

The renewed Iranian-Russian weapons talks are being encouraged by the parliament in Moscow. The chairman of the Duma's Defense Committee, Andrei Nikolayev, has termed Iran as a strategic partner of Russia and said Teheran will pay for weapons in cash.

But Russian Foreign Minister Igor Ivanov said Moscow has tried to play down the issue. "In fact, nothing serious has happened," Ivanov said. "No one has signed any contracts with Iran. The issue is that Russia, when it comes to military cooperation with Iran as well as with other countries, does not consider itself constrained by any special obligations in spheres which are not restricted by international obligations."

Meanwhile, Iran plans to bolster its relations with Libya. An envoy of Khatami, Mohammed Ali Abtahi, has met Libyan ruler Moammar Khaddafy.

Abtahi was quoted by the officials Islamic Republic News Agency as saying that Iranian-Libyan relations would advance rapidly.