Russia Indemnfies Iran After Reneging on Deal for S-300 Air-Defense Systems

According to a report by Fars News Agency, Russia has returned Iran's advancement payment and the accrued interest after reneging on the delivery of S-300 air-defense systems to Iran.

"The main payment and its interest was returned to Iran by the Russian side," Foreign Ministry Spokesman Ramin Mehman-Parast said in a press conference in Tehran on Tuesday.

Iran brought the issue before the International Court of Arbitration, filing a complaint against the non-governmental Russian defense contractor company with which it entered into the contract.

According to the contract signed in 2007, Russia committed to supplying Iran with at least five S-300 air-defense systems. But Russian President Dmitry Medvedev declared in September 2010 that selling the missile systems to Iran would contravene UN Security Council Resolution 1929; it is understood that this stance resulted from the intense pressure brought to bear by the US government.

IMRA contributed to this report.