Article Posted on : - Oct 22, 2009

The latest version of S-300 family has been named S-300PMU2 Favorit. A file photo.

MOSCOW (BNS): Russia, which is reconsidering its contract with Iran to supply S-300 surface-to-air missile systems, might have to sustain �significant losses� if the deal is scrapped, a defence industry official has said.

�The fulfillment of the contract to deliver S-300 complexes to Iran fully depends on the country's leadership,� the anonymous official told RIA Novosti on Wednesday.

Earlier, Russian military expert Konstantin Makiyenko had said that the decision not to go ahead with the contract would cost Russia about $1 billion in lost profits plus $300-400 million in fines and penalties.

Stating that the missile was a defensive weapon system, he had said, �They are not under any embargo, and Russia is free to make its own decision on whether or not to supply them to one country or another.�

Russia is giving a second thought to the arms deal with Iran following concerns expressed by Israel and the West.

The latest version of S-300 family has been named S-300PMU2 Favorit. Having a range of up to 195 kilometers, it can intercept aircraft and ballistic missiles at altitudes ranging from 10 metres to 27 kilometres.

One of the world's most effective all-altitude regional air defense systems, it is comparable with the US� MIM-104 Patriot system.