Article Posted on : - Oct 08, 2010

S-300 air defence missile

MOSCOW (PTI): Russia will compensate Iran for scrapping a USD 800 million S-300 air defence missile deal which was halted after a fresh round of UN Security Council sanctions against the Islamic Republic for its suspected nuclear programme, a top Russian defence official Friday said.

"Russia is holding talks with Iran over compensation payments for the cancellation of a contract to supply Tehran with S-300 air defence missile systems," Sergei Chemezev, head of state-controlled Russian Technologies was quoted as saying by RIA Novosti.

Earlier last month, Russian President Dmitry Medvedev signed a decree on enforcing UNSC sanctions providing for ban on export of sophisticated arms to Iran.

The contract to supply Iran with the missile system, one of most effective in existence, was signed in December 2007.

Russia was to supply five divisions of S-300PMU-1. Like the US Patriot class missiles the Russian S-300 system is designed for defending high-value assets such as military bases and command and control centres.

It can engage all kinds of aerial targets including ballistic and cruise missiles, up to a range of 150 kilometres and an altitude of 27,000 meters.

Chemezev said the missile systems for Iran have been built, and could possibly be supplied to a third country, and the proceeds will be used to compensate Tehran.