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Russia has banned the sale of the S-300 air defence system to Iran after it was barred by UN sanctions. Sergei Chemezov, Head of Russia’s state weapons exporter, said it had canceled the contract and would repay Iran’s $166m (£105m) advance payment. However, beyond that, he said, "we are not obliged to return another kopeck". Although Iranian officials have blamed Moscow of breaching its contract and caving in to US pressure.1
In another development, Iran has accused the World Bank of “discriminatory behavior” for declining to authorize new development assistance to the country. Iran’s Economy Minister Shamseddin Hosseini stated that development and humanitarian assistance was not part of UN sanctions, imposed by the UNSC to curb Iran‘s nuclear development. He said the refusal by the global lender since 2005 to consider a new lending strategy, known as the Country Assistance Strategy (CAS), for Iran is against the Bank’s articles of agreement. The US lawmakers have forced the World Bank not to lend to Iran and have threatened to withhold US funding to the poverty-fighting institution if it approves new lending.2
- 1. “Russia to repay Iran for cancelled missile order,” BBC News, October 7, 2010, at http://www.bbc.co.uk/news/world-europe-11495172
- 2. “Iran blasts World Bank for refusing loans,” Khaleej Times, October 9, 2010, at http://www.khaleejtimes.com/DisplayArticle08.asp?xfile=data/middleeast/2...