US relations with Russia hit another obstacle yesterday when the State Department imposed sanctions on two Russian companies - one of which has close connections with President Vladimir Putin - for selling arms to Iran. The move angered the Russian government.

The State Department said the companies - the state-controlled weapons exporter Rosoboronexport and aircraft manufacturer Sukhoi, as well as two Indian firms, two North Korean companies and a Cuban group - were exporting material that could contribute to the development of weapons of mass destruction by Iran or a cruise or ballistic missile system.