"A contract for delivery to Iran of TOR air defense missile systems has indeed been signed," local news agencies quoted Defense Minister Sergei Ivanov as saying after a meeting with Indian Prime Minister Manmohan Singh.

"It in no way upsets the balance of forces in the region," Ivanov said, adding: "Any delivery of weapons by Russia is carried out in the framework of the law and taking account of international obligations."

Russian media, quoting unnamed senior defense ministry officials, reported Friday that Iran had agreed to purchase 29 TOR M1 mobile surface-to-air missile defence systems from Russia in a contract worth more than 700 million dollars (600 million euros).

The TOR-M1 is a mobile system designed for operation at medium- and low-altitude against aircraft and guided missiles. Each unit consists of a vehicle armed with eight missiles and a radar that can track 48 targets and engage two simultaneously.

Reports of the deal Friday drew a swift response from US Under Secretary of State for political affairs Nicholas Burns who was in Moscow at the time. He said Washington was not happy with the sale and had asked for an explanation.

"Any arms sales to Iran, that's a source of concern," a US State Department official said later that day in Washington. "And there are certain US laws which govern our potential reaction to that."

Ivanov said the weapons were strictly defensive in nature and could only be used against objects in the air and within close range of the systems. He said the weapons could not be used to strike targets on the ground.

The Russian foreign ministry also confirmed the sale and stressed the defensive nature of the weapons.

"All contracts signed in the field of military-technical cooperation comply fully with our international obligations, including those of nonproliferation, and are in full compliance with Russian law," ministry spokesman Mikhail Kamynin said.

Earlier this year, Russia announced the sale of short-range Strelets air defense missiles to Syria, a deal that also incurred criticism from the United States and Israel and that President Vladimir Putin said involved purely defensive weaponry.

Israel lambasted Russia on Sunday over the latest sale, with an foreign ministry spokesman telling AFP that any arms sale to Tehran "strengthens the military strength of the state and serves only the interests of the most negative elements in the region."

Iran's top national security official, Ali Larijani, defended the deal in an interview with AFP.

"Is this a problem? Do we need permission?" Larijani said.

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