Russian President Vladimir Putin has signed a decree to suspend an agreement with the United States on the disposing of weapons-grade plutonium, a further sign of worsening ties between the former Cold War foes.

Mr Putin says the deal will be resumed once sanctions are lifted and Russia is paid compensation for damages The deal, which was signed in 2000 and went into force under a 2010 agreement, is being suspended due to “the emergence of a threat to strategic stability and as a result of unfriendly actions by the United States of America towards the Russian Federation.

The 2010 agreement, signed by Russian Foreign Minister Sergei Lavrov and then US secretary of state Hillary Clinton, called on each side to dispose of 34 tonnes of plutonium by burning it in nuclear reactors. Mrs Clinton said at the time that that was enough material to make almost 17,000 nuclear weapons..

Ties between Moscow and Washington plunged to freezing point when Russia annexed Crimea from Ukraine in 2014 and gave support to pro-Moscow separatists in eastern Ukraine after protests in Kiev toppled pro-Russian President Viktor Yanukovich.

Washington led a campaign to impose Western economic sanctions on Russia for its role in the Ukraine crisis.

According to a draft law also signed by Mr Putin, Russia now wants the United States to cancel all sanctions and pay compensation for the damage they have caused if Moscow is to resume the disposal agreement.