2010/10/02

Iran still wants Russian S-300 system missiles to defend against Israeli aggression.

Iran WILL file a court claim against Russia if that country does not fulfill its contract for the supply of the anti-aircraft missile system S-300. Russia had promised five battalions of S-300PMU-1, to be paid for with $800 million. According to Russia, this contract can probably not be executed as planned, because of UN sanctions against Iran. According to the existing practice, the party at fault must pay ten percent of the transaction value to Iran, which means that Russia could lose $80 million. In the long term, such supply disruptions could lead to the loss of the important Iranian market by Russia, which may then be picked up by default by Chinese contractors. According to Ivan Konovalov, this may be a crude disruption of the close cooperation by the Russians with the Iranian administration. Tehran clearly believes that Russia shares all of the blame, and other countries will think twice before they opt for Russian weapons systems.

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