Russia has returned a prepayment it received for S-300 surface-to-air missile systems it ultimately refused to deliver to Iran but has paid no penalty, Russian Technologies chief Sergei Chemezov said on Friday.
“The prepayment to the manufacturer was returned to the Iranians because the delivery was not made in accordance with a UN Security Council resolution,” he said.
Iran’s Defense Minister Ahmad Vahidi said in October Tehran was seeking compensation in international arbitration for breach of the $800 million contract.
Iran complained to the International Court of Arbitration over Russia's refusal to implement the contract.
In June 2010, the UN Security Council adopted Resolution 1929, imposing restrictions on the supply of conventional weapons to Iran, including missiles and missile systems , tanks, attack helicopters, warplanes and ships.
Russian President Dmitry Medvedev banned the transfer of S-300 missiles, armored vehicles, combat aircraft, helicopters and ships to Iran on September 22, 2010.
