Global Security Newswire

The Iraqi government on Saturday announced it had axed a multibillion-dollar agreement with Russia to purchase ground-to-air missiles, aircraft, and other weapon systems, Reuters reported.

The office of Prime Minister Nouri al-Maliki issued the declaration, which cited concerns about potential malfeasance in the $4.2 billion weapons deal. "Our need for weapons still stands so we will renegotiate new contracts," Maliki spokesman Ali al-Moussawi said. "This is a precautionary measure because of suspected corruption."

The statement from Maliki's office was quickly repudiated by acting Defense Minister Sadoon al-Dulaimi, who said the weapons agreement was going forward.

"We have not transferred even one dinar, there was no agent, no contract was signed," al-Dulaimi said to journalists. "These were just technical and financial offers," said the defense head, who was involved in the arms deal talks with Russia.

Under the agreement, Iraq would have acquired air-defense systems, fighter helicopters, missiles, and MiG-29M/M2 warplanes, according to the Russian Kommersant newspaper.

Had the contract gone through, Russia would have become Iraq's No.2 weapons agent, behind the United States.