Russia lifts sanctions on Iran by supplying air missile system in landmark deal

Russia lifted its sanctions on Iran Monday after world powers reached an interim deal with the Islamic Republic aimed at curbing its nuclear programme.

Russia lifted the ban on supplying Iran with an air defence missile system, signing the delivery of the S-300s, which was cancelled in 2010 after the UN imposed sanctions on the Ayatollahs.

Despite the sanctions, Russia and Iran have remained close allies. Russia's Foreign Minister Sergey Lavrov said in a statement that the sale was put on hold "entirely voluntarily" to aid the talks on Iran's nuclear programme.

However, according to Russian news agency Interfax, the country’s defence ministry said it was ready to supply the S-300 equipment "promptly".

The delivery would be a "step forward", for Russian and Iranian relations, the Iranian Deputy Defence Minister Reza Talainik told the Tasnim news agency.

"I think Russia has returned to the first step and is prepared to act upon its previous undertakings. We hope it will do so and show us its good will," he said.

Russia was one of six major world powers to reach an outline agreement with Iran over its nuclear programme – a deadline of 30 June has been set to reach a comprehensive deal.

Separately, a senior government official said separately that Russia has started supplying grain, equipment and construction materials to Iran in exchange for crude oil under a barter deal.

Sources told Reuters News that a deal worth up to $20bn was being discussed with Tehran and would involve Russia buying up to 500,000 barrels of Iranian oil a day in exchange for Russian equipment and goods.