MOSCOW, Oct. 7 (UPI) -- Russia is holding talks with Iran over compensation payments for a missile defense system it built, but never delivered, an official said.
Russia agreed to deliver $800 million worth of sophisticated S-300 PMU-1 missiles in 2007, but withheld them after a U.N. sanction was lodged against the Islamic Republic over its nuclear program, RIA Novosti reported.
Rostekhnologia head Sergei Chemezov Thursday confirmed talks are under way "on how to compensate for Iran's outlay."
Russian President Dmitry Medvedev signed an order blocking the shipment in September, after the United Nations initiated sanctions against Iran, alleging its nuclear program is aimed at developing nuclear weapons, which Iran denies.
The missile systems have been built, and might be sold to a third country, with money from any sale being used to compensate Tehran, the report said.
The S-300 system is among the most sophisticated of its kind, and can engage numerous aerial targets, including ballistic and cruise missiles; the missiles have a range of about 90 miles, Novosti said.