The United States said on Tuesday it imposed sanctions on a Russian company for transferring laser-guided artillery shells to Iran and it imposed, and immediately waived, broader sanctions on Russia.

"The United States government has determined that the government of Russia transferred lethal military equipment to countries determined ... to be state sponsors of terrorism," the State Department said in the US Federal Register.

While the notice did not identify the equipment, a State Department official said it was laser-guided artillery shells.

The State Department said it would bar US aid to Russia's Tula Design Bureau of Instrument Building for one year but that it had decided it was important to the US national interest to waive broader sanctions on Russia.

In addition to barring US aid to the firm for a year, the State Department announced further sanctions on Tula including "denial of US Government procurement for one year and denial of new licenses and other approvals for exports and imports of defense articles and services for one year."

(China Daily September 17, 2003)