Russia to return Iran's advance pay for S-300 missiles

Russia to return Iran's advance pay for S-300 missiles

2010-10-07 20:57:15 GMT+7 (ICT)

MOSCOW, RUSSIA (BNO NEWS) -- Russia is discussing compensation payments with Iran following the contract cancellation of S-300 air defense missile systems that were to be supplied for Tehran, a Russian official said on Thursday.

At the end of 2007, an $800 million dollar order was formalized in which Russia would supply Iran with five of S-300PMU-1 systems, but in September, Russian President Dmitry Medvedev signed a decree in which supplying Iran with any tanks, fighter jets, helicopters, ships, and missile systems are strictly forbidden.

Officials in Moscow are currently reviewing how to reimburse the down payments.

The decree came after the United Nations Security Council in June adopted its most recent set of sanctions against Tehran due to its failure to stop uranium enrichment processes.

“Talks are underway on how to compensate for Iran’s outlay,†Rostekhnologia head Sergei Chemezov said. "We are now preparing all the necessary documents. We should return them all the funds," he added. "Of course, they are not very pleased. We do not have a choice."

The delivery of the S-300 missile systems had been initially postponed on several occasions due to technical issues. However, their construction is complete and Chemezov said they could be sold to another country in order to use those funds to pay off Iran.

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