Britain ordered to pay $650 mn to Iran

Last Updated: Sun, Apr 25, 2010 14:20 hrs

An arbitration court in The Hague has ordered the British government to refund $650 million to Iran over an arms deal in the 1970s.

The Shah of Iran had ordered 1,500 Chieftain battle tanks and 250 military vehicles, worth $650 million, from Britain, but the deal was cancelled after the Islamic Revolution in 1979.

Iran took Britain to court to reclaim the advance payment made as part of the agreement, Iranian state-run Press TV reported Sunday, citing British media. According to media reports, Britain is to pay back nearly 400 million pounds (or $650 milion) to Iran.

The settlement between the International Military Services (IMS) Ltd., the company used by the British defence ministry to strike the tank deal, and the Iranian defence ministry will be finalised in the coming weeks.

More from Sify: