The state-owned Russian Technologies played a major role in the 2007
contract to export at least five S-300PMU1 air defense systems to Iran. In
September 2010, after years of Israeli and U.S. pressure, the Kremlin
announced that it was suspending the S-300 contract, which called for the
delivery of the first battery in April 2009.
In a briefing on Oct. 7, Chemezov provided details of the S-300
contract, Middle East Newsline reported. He said Iran has relayed a down payment of $166.8 million for the
$800 million contract.
"We should return all the funds to them," Chemezov, who accompanied
Russian President Dmitry Medvedev on a visit to the Republic of
Cyprus, said. "Of course, they are not very pleased. We don't have a
choice."
Chemezov did not say when Moscow would return the S-300 down payment to
Iran. But he said it would probably not take place in 2010.
The Russian compensation figure was far less than that demanded by Iran.
Officials said the Teheran regime has demanded more than $300 million for
the cancellation of the S-300 contract, a figure that included penalties.
"We are under no obligation to return anything else," Chemezov said. "We
are not talking about any other compensation."