http://www.geostrategy-direct.com/geostrategy-direct/secure/2010/11_03/1.asp

 

Iran pursues refund from Russia for S-300, rules out Venezuela option 

NICOSIA - Iran has acknowledged that it was seeking compensation from Russia
for its cancellation of the S-300 air defense project. 

Meanwhile, Iran has ruled out procurement of an S-300 air defense system
from any country other than Russia. 

Officials said Iran has been in contact with Russia to conclude the
estimated $1 billion S-300 program. They said Teheran has begun legal
proceedings to obtain delivery of the long-range air defense system. 

"We are now taking legal action to get compensated by Russia," Iranian
Defense Minister Ahmed Vahidi said. 

Officials said the Defense Ministry does not intend to buy the S-300PMU1
from a third party. They cited reports in the Russian media that Teheran
could purchase the long-range system from Venezuela. 

"Currently, there is no such plan on the agenda of the Defense Ministry,"
Vahidi said. 

In remarks on Oct. 23, Vahidi did not detail the legal action. Earlier,
Russia said it was discussing a settlement to conclude the S-300 project,
but acknowledged differences with Teheran. 

Russia was said to have offered to return Iran's $300 million deposit for
the S-300. But officials said Iran has demanded penalties of at least $300
million for the canceled contract. 

In remarks to the Fars News Agency, Vahidi said Iran would continue efforts
to develop a long-range SAM system. He did not elaborate. 

"We will soon produce a domestic S-300 missile system," Vahidi said. 

Earlier, on Oct. 20, the Defense Ministry sought to refute Russian reports
that Iran has worked out an arrangement in which Venezuela would acquire at
least five S-300 systems. The reports speculated that Venezuela, a leading
ally, would then transfer the air defense batteries to Teheran. 

After a delay of nearly 18 months, Russia decided not to deliver the S-300
to Iran. Over the last week, Russian analysts and media have asserted that
Moscow could send the air defense systems, part of a contract estimated at
nearly $1 billion, to either China or Venezuela. 

Venezuela has become Iran's leading ally. Western intelligence sources said
Teheran has become a key supplier and trainer of Venezuela's military and
security forces. 

Over the last few months, Vahidi has asserted that Iran no longer requires
the S-300. He said the Defense Ministry has been overseeing the development
of a system that exceeded the capabilities of the S-300. 

 



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