Moscow, Dec. 2 (Reuters): Russia plans to sell more than $1 billion worth of tactical surface-to-air missiles and other defence hardware to Iran, Russian media reported today.

Moscow is already at odds with the West over its nuclear ties with Tehran but has sought to use its warm relations with Iran to be recognised as a key mediator between the West and the Islamic Republic.

The Vedomosti business daily cited military sources as saying Iran would buy 29 TOR-M1 systems designed to bring down aircraft and guided missiles at low altitudes. The paper, calling it the biggest sale of Russian defence hardware to Iran for about five years, said Moscow and Tehran had already signed the contract.

Interfax news agency separately quoted a source as saying the deal, which would also include modernising Iran’s air force, was worth more than $1 billion. The move could strain Moscow’s efforts to broker a deal between Iran and European negotiators aimed at breaking a deadlock over Tehran’s nuclear programme.