Russian arms builder says it will return money Iran paid as advance for air defense missilesBy AP
Thursday, October 7, 2010
Russia to return Iran’s advance pay for missiles
MOSCOW — The head of Russia’s arms manufacturer reportedly says it will return Iran’s advance payment for the air defense missiles whose delivery was canceled by the Kremlin.
Sergei Chemezov, head of the state-controlled Russian Technologies holding company, was quoted by Russia’s news agencies as saying Thursday that Russia will return $166.8 million it received as payment from Iran.
He said that Russia owes nothing else to Iran, since the 2007 contract for the delivery of the S-300 missiles was canceled because of UN sanctions on Iran.
Iranian officials have criticized Moscow’s move and accused it of caving in to U.S. pressure. The United States and Israel have strongly objected to the deal, which would have significantly boosted Iran’s air defense capability.