Iraq cancels $5.2b Russia arms deal over graft concerns

BAGHDAD (AFP) - Iraq has cancelled a US$4.2 billion (S$5.2 billion) package of arms deals with Russia over corruption concerns, a spokesman for Prime Minister Nuri al-Maliki said on Saturday.

"The deal was cancelled," Mr Ali Mussawi told AFP. "When Maliki returned from his trip to Russia, he had some suspicions of corruption, so he decided to review the whole deal... There is an investigation going on, on this."

Mr Mussawi declined to say who specifically was being investigated, or if Iraq would begin new negotiations with Moscow.

He also did not say exactly when the final decision was made to stop the deal.