MOSCOW: Russia announced Saturday that it intended to fulfil its contract to supply Syria with cruise missiles despite the turmoil shaking the Arab world and Israel's furious condemnation of the deal. “The contract is in the implementation stage,” news agencies quoted Defense Minister Anatoly Serdyukov as saying. Russia initially agreed to send a large shipment of anti-ship Yakhont cruise missiles to Syria in 2007 under the terms of a controversial deal that was only disclosed by Serdyukov in September 2010. The revelation infuriated both Israel and the United States and there had been speculation that Russia would decide to tear up the contract amid the current turmoil plaguing north Africa and the Middle East. Israel —which is still technically in a state of war with Syria and fears its close ties with Iran — suspects that the shipment is ultimately aimed at supplying Hezbollah militants in neighbouring Lebanon. The disputed sale is believed to be worth at least $300 million and is meant to see Syria receive 72 cruise missiles in all.Russia has not officially confirmed making any Yakhont deliveries to date. But Interfax cited one unnamed military source as saying that Russia had already sent Syria two Bastion coastal defence systems that can include up to 36 Yakhont missiles each. The feared systems can only operate when equipped with radar and target detection helicopters and it was not clear from Serdyukov's comments which supplies – if any – had already been received by Syria. Serdyukov's comments come amid Russian efforts to keep its military supply lines open to the Middle East despite the wave of revolutions and social unrest currently sweeping the region. A source in the Russian arms exports industry said this week that the fall of the region's regimes may see the country lose about $10 billion dollars in contracts.