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Russia pays no cancellation penalty to Iran in S-300 contract situation

January 20, 2012, 17:54 UTC+3
He noted that Tehran was still interested in buying anti-aircraft missile systems of the kind, in particular, S-400
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MOSCOW, January 20 (Itar-Tass) —— Russia did not pay any cancellation penalty to Iran following its refusal to deliver S-300 anti-aircraft missile defense systems, former Rosoboronexport general director, incumbent head of the Rostekhnologii state corporation Sergei Chemezov said on Friday.

“The advance payment Iran made for the S-300 delivery was returned after the UN Security Council had banned the delivery. No cancellation penalty was paid,” Chemezov said in comment on the Friday statement by the Iranian ambassador to Moscow.

Iranian Ambassador Mahmud Reza Sajadi said earlier in the day that Russia had returned the S-300 advance payment to Tehran.

“The advance payment has been returned together with cancellation penalty. Russia and us have other spheres of cooperation, and the cooperation goes on. It aims to ensure tranquility in the region,” the ambassador said.

He noted that Tehran was still interested in buying anti-aircraft missile systems of the kind, in particular, S-400.

“If we receive a S-400 selling offer, we will consider it very closely,” he said.

The contract on the delivery of S-300 systems to Iran was signed in 2008. Iranian sources said that the advance payment amounted to $167 million. However, Russia froze the delivery in 2010 after the UN Security Council declared international sanctions on Iran.

President Dmitry Medvedev signed an ordinance on September 22, 2010, banning the transfer of S-300 missiles and other modern armaments to Iran. Tehran insisted on the fulfillment of the contract until recently.

 

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