BAKU - Russia and Azerbaijan failed on Monday after protracted talks to agree on Moscow's continued use of an Azeri radar station, weakening the former Soviet master's grip on the strategically important and oil-rich country.

The Azeri Foreign Ministry said its Russian counterpart had sent a note saying it would no longer use the station.

Baku had wanted to increase the annual rent for the facility to $150 million from $7 million under the current agreement. Some media outlets said Baku had raised the price to $300 million.

The two sides negotiated for more than a year over Russia's desire to continue to rent the Gabala radar station, which was built during Soviet times. The lease expires this month.

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