The move drew an angry response from Moscow, which called the punitive action "unlawful" and "unacceptable".

The sanctions, imposed under a six-year-old US law, targetted major Russian airplane manufacturer Sukhoi, Moscow's state arms exporter, Rosoboronexport, as well as two Indian companies, a Cuban entity and two North Korean firms, the State Department said.

The measure bars US government agencies from purchasing any goods or services from, or providing any assistance to the targetted firms.

It also outlaws the sale of sensitive military equipment, services or technologies to the companies or any of their subsidiaries.

The sanctions took effect on July 28 and will remain in place for at least two years, the State Department said.

US officials said there were no current or pending contracts between government agencies and the seven firms which would be affected by the sanctions.

But it was not immediately clear if the move could jeopardize some business relationships, including a joint project involving Sukhoi and US aeronautics giant Boeing in the development of civilian passenger aircraft.

Russia denied any wrongdoing and condemned the sanctions, which came at a time when the two governments are already involved in difficult diplomatic efforts to prevent Iran from developing nuclear weapons.

"We consider such actions by the United States to be unacceptable," the Russian foreign ministry said in a statement, calling the move "the latest unlawful attempt to force foreign companies to work by domestic American rules".

"We want to underline that Russia always limits its exports to Iran to arms used only for defense and not capable of destabilising the situation in the region."

Sukhoi denied having any contracts with Iran within the past "six or seven" years.

The sanctions were ordered under a 2000 US law, the Iran Nonproliferation Act.

"They were imposed on these entities because there was credible information indicating that they had transferred to Iran since January 1, 1999, either chemical, biological, nuclear or missile systems," Jim Kelman, an official with the State Department's nonproliferation department, told AFP.

But Kelman would not provide any further details on just what the firms allegedly sold to Tehran.

In addition to the Russian firms, the sanctions hit Balaji Amines and Prachi Poly Products of India; Cuba's Center for Genetic Engineering and Biotechnology; and the North Korean firms Korean Mining and Industrial Development Corporation (KOMID) and Korea Pugang Trading Corporation, the State Department said.

Gladys Gines of the State Department's Office of the Procurement Executive said the punitive measure would have no immediate economic effect given the lack of dealings between US government agencies and the seven firms.

"But it will obviously have an impact on any potential future arrangements," she said.

After weeks of diplomatic jousting, Russia this week joined the United States and other members of the UN Security Council in voting for a resolution giving Iran until the end of the month to suspend uranium enrichment activities that could help the Islamic republic develop nuclear weapons.

But Moscow remains a major partner for Tehran, notably building Iran's first nuclear reactor and agreeing late last year to sell it 700 million dollars worth of surface-to-air missile defense systems.

The sanctions could also complicate relations between the United States and India amid controversy over a landmark US decision to ease restrictions on Indian access to nuclear technology for its civilian energy industry.

US officials have defended the decision in part by saying it will advance US non-proliferation goals by bringing India into the international mainstream.

But Friday's sanctions gave ammunition to critics of the deal who complain that India has still not signed the Nuclear Non-Proliferation Treaty.

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