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MOSCOW | Wed Jan 30, 2013 12:58pm IST

MOSCOW (Reuters) - Russia is scrapping its agreement with Washington to cooperate on law enforcement and narcotics control, another sign of deteriorating ties between the Cold War-era foes since Vladimir Putin's return to the Kremlin last year.

The order, signed by Prime Minister Dmitry Medvedev and posted on the government website on Wednesday, said the agreement, which came into force in 2002, "does not address current realities and has exhausted its potential".

Moscow is unhappy with a law passed by the United States last year imposing sanctions on alleged Russian human rights abusers. It has responded with a bill imposing similar measures and banning the adoption of Russian children by U.S. families.

The agreement on cooperation in law enforcement and drug control, the statement said, outlined financial assistance provided by the United States for Russian law enforcement and narcotics control programmes.

Russia's Foreign Ministry has been ordered to inform U.S. authorities, the statement said. The U.S. Embassy in Moscow declined immediate comment. (Reporting by Thomas Grove; Editing by Douglas Busvine and Patrick Graham)

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