Russia is set to reimburse Iran's down payment for a missile system after deciding to cancel the contract. Kremlin banned the sale of the S-300 air defence system to Iran after it was outlawed by UN sanctions.
Head of Russia's State Weapons Exporter Sergei Chemezov said it had cancelled the contract and would pay back Iran its $166 million down payment. Beyond that, he said, "we are not obliged to return another kopeck".
Iranian government officials have accused Russia of breaching its contract and yielding to pressure from the US. The S-300 system would have improved Iran's defence of its nuclear facilities, as speculations of a possible attack by Israel mount.
Russia seems to have resolved to take a tougher approach to bilateral relations with Iran, following in the footsteps of the US and its European counterparts.
Source: BBC News
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