U.S. broke law with new company sanctions: Russia

Russia accused Washington on Friday of breaking international law and undermining co-operation on Iran's nuclear program after it imposed sanctions on companies accused of passing sensitive technology to Tehran.

The U.S. State Department said on an official website it had imposed sanctions on firms in China and Russia for alleged sales of sensitive technology that could help Iran, North Korea and Syria develop weapons of mass destruction or missile systems.

"These new sanctions were introduced without any international legal foundation whatsoever," Russian Foreign Minister Sergei Lavrov said.

"Russia will of course take this into account in practical affairs and relations with the United States such as in trade and economic and other spheres."

Lavrov, speaking at a news briefing after talks with Luxembourg's Foreign Minister Jean Asselborn, said the U.S. measures would not make Russia change its policies on Iran.

"All our trade and all of our military-technical co-operation with Iran is carried out in strict accordance with current international legal norms," Lavrov said. 

"There can be no other explanation here than the rather arrogant extraterritorial implementation of American laws."

Western states suspect Iran of trying to develop a nuclear bomb. Tehran denies this, saying its nuclear program is for civilian purposes only.

Russia has given limited backing to United Nations sanctions against Iran over its nuclear program, but says there is no evidence Iran is seeking nuclear weapons.

Unscrupulous competition

A document published on the U.S. Federal Register said the sanctions would be effective from Oct. 23.

A State Department spokesman was not immediately available for comment.

Under the sanctions, which usually last two years, no U.S. government agency may enter into any agreement with the organizations named.

Sanctions were imposed on 13 organizations, including China Xinshidai Company, China Shipbuilding and Offshore International Corporation, Huazhong CNC as well as Russian state arms exporter Rosoboronexport and the Venezuelan Military Industries Company.

The United States imposed sanctions in 2006 on Rosoboronexport, now a unit of Russian industrial group Russian Technologies, provoking sharp criticism from Moscow.

Russian Technologies is headed by Sergei Chemezov, a close ally of Prime Minister Vladimir Putin. Russian Technologies also has stakes in AvtoVAZ, Russia's top carmaker, and VSMPO-Avisma, the world's largest titanium producer. 

A spokesman for Rosoboronexport said on Russian television the State Department's measures were "a case of unscrupulous competition," by the United States and that the firm worked in line with all international agreements on arms control.