Iran demands $4 bn from Russia over cancelled missile deal
Moscow, July 5 (IANS/RIA Novosti) Iran has filed a $4 billion law suit against Russia's state arms corporation Rosoboronexport in an international court in Geneva over a missile deal that Russia suspended.
Rosoboronexport said the law suit was filed by the Iranian defence ministry and the Aerospace Industries Organization.
"The case was started April 13, 2011. The subject of the case is 'Possible damages of $3,985,159,773.32 to fulfil obligations for delivery of special property'," the Russian organisation said in reference to ongoing legal case.
The case has not yet been heard by the court.
In June 2010, the UN Security Council passed a resolution imposing sanctions on Iran, including suspension of arms deliveries.
Russia responded by saying it would cancel a contract to deliver S-300 missiles to Iran, and subsequently returned a $166.8 million deposit.
Iran previously applied to the International Court of Justice to try to force Russia to fulfil the terms of a 2007 contract to deliver S-300 air defence missile systems or pay compensation.
If a contract was signed that included clauses on penalties or recompense for failure to deliver, then Iran probably has a case. Not that they'd actually get the money if it went their way (sanctions and all), but the principle of fair and honest dealings in contracts is pretty important. Anyway, Iran must be very desperate to do this. Sanctions are hurting and their revenues from oil are dropping.