Israel has forfeited some US $1 billion in defense trade and dual-use development projects with Russia due to a delicately balanced foreign and export licensing policy aimed at preserving security ties with Moscow without harming vital interests of the US and its NATO allies.

In interviews here, officials underscored Israel’s sovereign right and need to advance its diplomatic and security agenda through strengthened ties with Moscow, an increasingly pivotal player in the region and the world.

But given ongoing US-Russian geopolitical posturing and recent tensions over Ukraine, Israel must remain sensitive to the interests of its key ally in Washington, officials here say. […]