Russia may lose billions for breaching contract with Iran!

Discussion in 'Europe and Russia' started by bhramos, Jun 30, 2010.

  1. bhramos

    bhramos Elite Member Elite Member

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    Russia's refusal to deliver S-300 surface-to-air missile systems to Iran means Tehran could turn to China as its main arms supplier, depriving Moscow of a serious source of revenue, a Russian daily suggested on Wednesday.
    Moscow said in mid-June it would freeze the delivery of S-300 air-defense systems following a new round of UN sanctions imposed on Tehran on June 9. Security Council Resolution 1929 imposed a fourth set of sanctions on Iran over its nuclear program, including tougher financial controls and an expanded arms embargo.

    The S-300 contract is worth some $800 million, while Russian experts estimate the penalty for breach of contract at $400 million.
    Furthermore, Iran could refuse to buy any more military products from Russia, leading to an estimated loss of $300 million to $500 million a year.
    http://en.rian.ru/russia/20100630/159641465.html

    So is Russia going to sell S-300 systems to Iran!!!
     
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  3. EagleOne

    EagleOne Regular Member

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    with santions imposed on iran can china supply defence equipment ??? if russia stop s-300
     
  4. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    Chinese have also placed sanctions against Iran, are they special that they can do what Russia can't??
     
  5. bhramos

    bhramos Elite Member Elite Member

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  6. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    ahmedsid likes this.
  7. Neil

    Neil Senior Member Senior Member

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    the problem of russia is that its been increasingly arm twisted by US to follow its path where as china as a super power in making cant and will not allow US to arm twist it.....so china can easily its missile to any country it wants.....without fear of any country....
     
  8. SHASH2K2

    SHASH2K2 New Member

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    They cannot do so openly in case of UN sanction. had it been any normal sanction they could have flouted it easily.
     
  9. Patriot

    Patriot Senior Member Senior Member

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    Iran to Russia: Give Us Missiles Or Lawyer Up



    After getting stiffed on the sale of a powerful Russian anti-aircraft missile, an Iranian lawmaker is warning that the Mullahs could see the Ivans in court.

    Last month, Russia abruptly canceled a long-planned $800 million deal to sell Iran its S-300 missile, a 200-kilometer-traveling weapon that western air forces fear. Iran wants the S-300 in order to make the U.S. or Israel think long and hard before launching air strikes on Iranian nuclear facilities. So maybe it’s not surprising that some Iranians don’t want to take nyet for an answer.

    [​IMG]

    Iran’s Fars news agency reports that Hossein Ebrahim, the deputy leader of the parliamentary national-security panel, claims that Iran can pursue a case against Russia for breach of contract in some unspecified court. Russia “has acted in contravention of the contract concluded between Tehran and Moscow,” Ebrahim told Fars. (Hat tip: Ares’ Robert Wall.) The panel’s chairman, Alaeddin Boroujerdi, issued a similar legal threat last week.

    But the Russians aren’t exactly lawyering up. Moscow claims that it voided the deal because of new United Nations Security Council sanctions on weapons shipments to Iran, so it’s freed of its obligations to sell the mullahs the S-300. Pravda all but laughs at Iran — which it says is in “convulsions” over the cancellation — and essentially dares Iran to collect its minimal compensatory damages.

    “According to the existing practice, the party at fault is to pay 10 percent of the transaction value to the customer,” the paper dryly calculates. “In this case, the maximum that Russia could lose is $80 million. The amount is clearly small.”

    But it’s not like Iran has better options than to hire a crack legal team — at least not until it figures out how to send its flying boats after the Russian navy.





    2010 October | Danger Room | Wired.com
     
  10. SHASH2K2

    SHASH2K2 New Member

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    This noise is towards domestic audiences. Iran cannot do much about Russia denying S300. Iran has lot to gain from Russia and cannot start confrontation with them. Russia is still supplying them with many technologies that no one else can. They cannot bite hands that feeds them .
     
  11. Patriot

    Patriot Senior Member Senior Member

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    Russia is providing vital support to it's nuclear energy reactor as well. Iran need S-300 from Russia to deter any air attack from US or Israel. This statement shows Iran's desperation to get these missiles by putting some pressure on Russia.
     
  12. lurker

    lurker Regular Member

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    Anyone thought that the stuxnet virus might actually have been infected by Russian workers? With the stance of Russia on Iran shifting, perhaps Russia wanted a quick and covert way to deal a blow to the program while keeping its ties intact?
     
  13. SHASH2K2

    SHASH2K2 New Member

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    By the time Iran gets S300 I am sure Israel will have counter mesures ready for it . Anyways it will be years before Iran can get it now.
     
  14. Tshering22

    Tshering22 Sikkimese Saber Senior Member

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    The point is that UNSC has to be very stern with the violators of this round of sanctions and this especially means Chinese. If they are permanent members then so are UK, France, Russia and USA and when all these are complying, then China must also comply or face the consequences. There's a reason why Russia's listening to the West and not supplying these weapons and Chinese don't care a damn if the entire earth was destroyed. They need to hold on to their horses for once and listen to UNSC.

    But I still don't understand why so much hue and cry for S-300 SAMs. I mean as SAMs they're not offensive weapons and even if Iran wants it cannot use the SAM batteries in offensive more against Israel in any way. The thing is if Russia doesn't supply S-300 to them then the Chinese will supply the JL-8 (or whatever they have designation for the copy) copy of S-300 to them. Same capacity, cheaper than original for Iran and revenues for Chinese firms.
     
  15. SHASH2K2

    SHASH2K2 New Member

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    Russia to refund Iran over missile deal: Arms export chief

    NICOSIA: Russia is reimbursing Iran for its downpayments on a deal for advanced S-300 ground-to-air missiles, which Moscow halted in the face of tough new UN sanctions, Russian Technologies chief Sergei Chemezov told reporters on Thursday.

    "We are now preparing all the necessary documents," said Chemezov, whose company includes arms exporting monopoly Rosoboronexport.

    "We should return them all the funds," he said. "Of course, they are not very pleased. We do not have a choice."

    Chemezov said it was unlikely Russia would return the money by the end of the year, however. He estimated the entire contract at around 800 million dollars (572 million euros).

    Iran has threatened to sue over what it regards as a breach of contract.

    Chemezov said "we have annulled the contract and are returning the advance payment," which he said was 166.8 million dollars (119.3 million euros).

    "In accordance with a provision of the contract on force majeure circumstances we are under obligation to return this advance amount which we have received.

    "We are under no obligation to return anything else. We are not talking about any other compensation."

    Russia had come under strong US and Israeli pressure not to go ahead with the sale of a weapons system that was seen as greatly complicating any military action against Iran.

    Both Israel and the United States have refused to rule out a 166resort to military action to prevent Iran acquiring a nuclear weapons capability, an ambition Iran strongly denies.

    Chemezov was in Cyprus accompanying President Dmitry Medvedev on a first ever visit to the Mediterranean holiday island by a Russian head of state.

    The UN Security Council adopted a fourth set of sanctions against Iran on June 9 over its failure to heed repeated ultimatums to freeze uranium enrichment, the sensitive process that produces fuel for nuclear reactors or in highly extended form the fissile core of an atomic bomb.

    Russia was critical of subsequent decisions by the European Union and the United States to impose additional sanctions of their own but has vowed to implement the UN package in full.

    Medvedev signed a decree last month banning supplies of S-300 missiles and other arms to Iran in a long-awaited move after weeks of deliberations by Russian officials.

    Under the decree, supplies of any tanks, fighter jets, helicopters, ships and missile systems are forbidden.

    Russia will also not supply Iran with any technologies related to ballistic missiles capable of delivering nuclear warheads. The decree also bans the transit of arms bound for Iran through Russian territory.

    In addition, Iranian citizens or companies will not be allowed to invest in any activities in Russia related to production of uranium.

    The decree will not mean a complete halt to all military cooperation between Moscow and Tehran, Deputy Foreign Minister Sergey Ryabkov told Russian reporters in New York last month.

    "We did not add anything to the list (of banned items), but on every point there we will have no further military cooperation with Iran. However, there are other forms (of military cooperation still allowed)," Russia's RIA Novosti news agency quoted Ryabkov as saying.

    Russia's tougher line on Iran has coincided with a warming of its relations with the United States. Washington has repeatedly praised Moscow for its support in the nuclear standoff with Tehran.

    Read more: Russia to refund Iran over missile deal: Arms export chief - The Times of India http://timesofindia.indiatimes.com/...t-chief/articleshow/6707411.cms#ixzz11gCJ3KXT
     
  16. SHASH2K2

    SHASH2K2 New Member

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  17. Tshering22

    Tshering22 Sikkimese Saber Senior Member

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    ^^ I bet Kremlin has some way to extract that money from NATO in some or the other way--- from the way I see it, the alternate supply route through Tajikistan to Badaghshan strip is the simplest way to recover such losses. The money still goes into Kremlin's pockets.
     
  18. Patriot

    Patriot Senior Member Senior Member

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    Russia to refund Iran over missile deal: arms export chief


    Nicosia (AFP) Oct 7, 2010
    Russia is reimbursing Iran for its downpayments on a deal for advanced S-300 ground-to-air missiles which Moscow halted in the face of tough new UN sanctions, Russian Technologies chief Sergei Chemezov told reporters on Thursday.

    "We are now preparing all the necessary documents," said Chemezov, whose company includes arms exporting monopoly Rosoboronexport.

    "We should return them all the funds," he said. "Of course, they are not very pleased. We do not have a choice."

    Chemezov said it was unlikely Russia would return the money by the end of the year, however, and declined to quantify the funds in question.

    Iran has threatened to sue Russia over what it regards as a breach of contract.



    Russia had come under strong US and Israeli pressure not to go ahead with the sale of a weapons system that was seen as greatly complicating any military action against Iran.

    Both Israel and the United States have refused to rule out a resort to military action to prevent Iran acquiring a nuclear weapons capability, an ambition Iran strongly denies.

    Chemezov was in Cyprus accompanying President Dmitry Medvedev on a first ever visit to the Mediterranean holiday island by a Russian head of state.

    The UN Security Council adopted a fourth set of sanctions against Iran on June 9 over its failure to heed repeated ultimatums to freeze uranium enrichment, the sensitive process that produces fuel for nuclear reactors or in highly extended form the fissile core of an atomic bomb.

    Russia was critical of subsequent decisions by the European Union and the United States to impose additional sanctions of their own but has vowed to implement the UN package in full.

    Medvedev signed a decree last month banning supplies of S-300 missiles and other arms to Iran in a long-awaited move after weeks of deliberations by Russian officials.

    Under the decree, supplies of any tanks, fighter jets, helicopters, ships and missile systems are forbidden.

    Russia will also not supply Iran with any technologies related to ballistic missiles capable of delivering nuclear warheads. The decree also bans the transit of arms bound for Iran through Russian territory.

    In addition, Iranian citizens or companies will not be allowed to invest in any activities in Russia related to production of uranium.

    The decree will not mean a complete halt to all military cooperation between Moscow and Tehran, Deputy Foreign Minister Sergey Ryabkov told Russian reporters in New York last month.

    "We did not add anything to the list (of banned items), but on every point there we will have no further military cooperation with Iran. However, there are other forms (of military cooperation still allowed)," Russia's RIA Novosti news agency quoted Ryabkov as saying.

    Russia's tougher line on Iran has coincided with a warming of its relations with the United States. Washington has repeatedly praised Moscow for its support in the nuclear standoff with Tehran.




    Russia to refund Iran over missile deal: arms export chief
     
  19. Oracle

    Oracle New Member

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    Are you kiddin' me? Jihadists a.k.a Pakistanis apart, Russia is the only country US of A is wary of. US of A does not give two hoots about PRC.
     
    Last edited: Oct 8, 2010
  20. pmaitra

    pmaitra Moderator Moderator

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    It is in the interests of both US and RF (Russian Federation) to fight against the Taliban and an increasingly radical Iran that openly calls for destruction of Israel. The Iranian government has openly called for the destruction of Israel and also claimed that they have nothing against Jews and are welcome to live in Palestine after Israel is destroyed (Does this make sense? To me it doesn't!). In any case, Iran needs to do more to make itself look trustworthy.

    RF would like the money coming from Iran through the defense deals, but would not like too powerful a country at it's borders. Moreover, RF would like to balance Iran and US out to milk both the sides, while simultaneously offering transit to Afghanistan to NATO supplies and at the same time refusing to supply NATO with Russian helicopters for anti-taliban operations.

    Maybe it's payback time since the days of 'Bush's legs'?
     
    Last edited: Oct 8, 2010

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