Russia has returned the $167 million prepayment for S-300 air defense missile systems to the Islamic Republic of Iran.

The contract to supply Iran with the missile system was signed at the end of 2007, with Russia obliging to supply five divisions' worth of S-300PMU-1 for $800 million. Russia canceled the contract over the UN sanctions imposed against Iran.

“We guarantee return of prepayment in case of circumstances not envisaged by the contact, like it happened now,” Russian defense official Anatoly Isaykin told Kommersant daily.