The Iraqi government said on Saturday it had cancelled a $4.2 billion deal to buy military jets, helicopters and missiles from Russia, citing possible corruption in the contract. In a confusing exchange, the announcement by Prime Minister Nuri al-Maliki's office was immediately contradicted by the acting Defence minister who denied the corruption charges, claiming the deals were still valid.
US military hardware remains key for Iraq's armed forces, but security analysts said the Russian deal had appeared to open a way for Maliki to resist US political pressure by diversifying his arms suppliers.
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