Iran’s Defense Minister Ahmad Vahidi has announced progress in the development and manufacture of an indigenous version of the advanced Russian S-300 air defense missile system, RIA Novosti reported citing Fars news agency.

"The production of an alternative missile system is underway,” he said, adding that the work “has yielded good results.”

Iranian military officials earlier said the missile system, called Bavar (Belief) 373, is even more powerful and more advanced than the Russian S-300.

The $800-million contract to supply Iran with the missile system was signed in late 2007. Russia was to deliver five S-300PMU-1 battalions to Tehran.

However, on September 22, 2010, Russian President Dmitry Medvedev signed a decree terminating the contract in line with UN Security Council Resolution 1929, which bans supply to Iran of conventional weapons including missiles and missile systems, tanks, attack helicopters, warplanes and ships.