Russia to reimburse Iran for nixed missile pact
By the CNN Wire Staff
October 7, 2010 -- Updated 1709 GMT (0109 HKT)
(CNN) -- Russia is preparing to reimburse Iran for canceling a contract for a missile defense system, and China is discussing the sale of a similar missile to the Islamic republic, according to Iranian and Russian news agency reports.
"We are now preparing all the necessary documents," Iran's state-run Press TV reported, citing Russian Technologies chief, Sergei Chemezov. "Talks are under way on how to compensate for Iran's outlay."
Russia blocked weapons sales to Iran last month because of U.N. sanctions against the Islamic republic over its nuclear program, despite Iran's objections. Items blocked from sale include the S-300 surface-to-air missile systems. The order banned export to Iran of armored vehicles, military aircraft, helicopters and ships.
Iran has said repeatedly that its nuclear program is aimed at producing energy for peaceful purposes. It said Russia's refusal to deliver the system is a violation of its contract. International powers say Iran wants to pursue nuclear weaponry.
The Russian state-run RIA Novosti said Russia owes Tehran only the prepayment of $166.8 million for S-300 air defense missile systems, citing Chemezov.
The missile systems that had been destined for Iran have been built, and could possibly be supplied to a third country, Chemezov said, according to RIA-Novosti.
Iran's semi-official Mashreghnews cites a Russian publication reporting that China has been discussing the sale to Iran of a similar missile, and the defense ministries of the two countries' have discussed the sale in secret.