Moscow returns $167m to Iran for scrapped missile deal

MOSCOW, September 28 (RIA Novosti)

Russia has returned to Iran a prepayment it received for S-300 surface-to-air missile systems it ultimately refused to deliver, the IRNA news agency reported on Wednesday.

Iranian Defense Minister Ahmad Vahidi said his country is also demanding compensation for breach of the $800 million contract.

Earlier this month Iran complained to the International Court of Arbitration over Russia's refusal to implement a contract for the supply of the S-300 systems.

In June 2010, the UN Security Council adopted Resolution 1929, imposing restrictions on the supply to Iran of conventional weapons, including missiles and missile systems , tanks, attack helicopters, warplanes and ships .

Russian President Dmitry Medvedev signed a decree banning the transfer of S-300 missiles, armored vehicles, combat aircraft, helicopters and ships to Iran on September 22, 2010.