TODAY: Opposition protester gets four years; large new corruption case; Iraq reported to have cancelled huge arms deal; Razvozzhayev case sent to United Nations; Bout will not be extradited; Russia to help with Arafat investigation. 

Maxim Luzyanin, one of 18 people on trial for protesting against the government on Bolotnaya Square on May 6, has been jailed for four and a half years for ‘participating in unrest’.  Alexei Navalny commented on the news of Luzyanin’s sentence, saying that it did not bode well for the rest of those detained. ‘The time has passed when [the Kremlin] were afraid to jail [opposition members] because they didn’t want people to think about ’37 [Stalin’s purge of 1937]’.  Moscow police have accused space contractor Russian Space Systems of using various schemes to steal $200 million in federal funds earmarked for the Glonass satellite navigation system.  Reports say Iraq has canceled a $4.2 billion deal to buy military jets, helicopters, and missiles from Rosoboronexport, citing possible corruption (although the report has been denied by the Iraqi official who negotiated the deal, suggesting that the deal is merely being reviewed).  If the deal, which would have made Russia Iraq’s number two arms supplier, has indeed been scrapped, Russia is unlikely to receive any compensation, says an analyst.