Russia confirms Syrian MiG deal

“A few years ago, two contracts were signed: one for [the supply to Syria of] MiG-29s and one for MiG-31s," the head of Russia's United Aircraft Corporation, Alexei Fedorov, told the paper. "Consultations on this contract are now ongoing, so its future is unclear."

Kommersant reported in May that Russia had halted work on the modernisation of the fighter jets at the Sokol aviation plant in the Russian city of Nizhny Novgorod.

But Russia's state arms exporter has dismissed such reports as rumours.

The $400 million to $500 million contract for the delivery of eight MiG-31s fighter jets was inked in early 2007, according to Kommersant.

It cited sources close to the arms exporter in May saying the supplies of the planes had been frozen under foreign pressure over fears the weapon sales could offset the balance of power in the region.

According to a government official cited by Kommersant, the contract had been suspended after Damascus could no longer afford the planes.

In 2005, Moscow forgave 70% of Syria's total debt of $13.4 billion.

United Aircraft chief Federov nevertheless told the paper the Russian plane maker was counting on completing contracts, as production at its factories has slumped amid the global financial crisis.

"Negotiations are ongoing, I hope that in the end the contracts will be realised. We put a lot of hope in it stabilising the situation in Nizhny Novgorod," he was quoted as saying.