Russian officials say the country plans to reimburse Iran, after Moscow canceled the sale of an air defense missile system to Tehran. The announcement comes as the Russian president is on a one-day state visit to Cyprus.
In the scope of a $800 million contract brokered in 2005, Russia was obliged to send Iran at least five S-300 missile systems.
But last month, Russian President Dmitry Medvedev banned the sale of the missile systems following United Nations sanctions against such arms sales.
The U.N. imposed the sanctions in June for Iran's refusal to stop enriching uranium.