Libyan leader Muammar Qaddafi has signed contracts worth USD 450 M with French companies for missiles and communications equipment, a Libyan official said on Friday.

A spokesman for French President Nicolas Sarkozy would not confirm the deal but said there appeared to be one.

French officials denied that any deal to sell military equipment was in exchange for Libya's releasing the six imprisoned Bulgarian medics last month.

The first contract, worth USD 230 M, is for Milan missiles, and the second, totalling USD 175 M, is for advanced Tetra communications and surveillance equipment for the police, said the Libyan official, speaking on condition of anonymity because he was not authorized to speak to the press. He did not reveal the names of the French companies.

The official said the deal is important because it is the first of its kind that Libya has signed with a Western country since sanctions were imposed in the early 1990s.

Asked whether arms contracts with Libya had been signed, French Defence Minister Herve Morin told RTL radio: "They have not been signed formally. There is a letter of intent from Libya saying we wish to buy Milan missiles...there is also a letter of intent for radio systems."

European defence and aviation group EADS said Friday it had finalized two military contracts with Libya to supply anti-tank missiles and communications systems.

A statement by EADS said a contract for Milan anti-tank Milan from its subsidiary MBDA"is today finalized after 18 months of discussions and negotiations." The statement said the deal was awaiting a signature from the Libyan side.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!