Tehran and Moscow continue negotiations on the mechanism of a lawsuit withdrawal for non-delivery of S-300 air defense systems, Iranian Deputy Foreign Minister Murteza Sarmadi told Sputnik Sunday.�

MOSCOW (Sputnik)�� Russia and Iran sealed a contract for�the delivery of�the S-300 surface-to-air missile systems in�2007.

Three years later, then-President Dmitry Medvedev put the deal on�hold after�the UN Security Council had introduced an embargo on�arms deliveries to�Iran over�the alleged development of�nuclear weapons by�the country.

Following the move, Iran sued Russia's state arms exporter Rosoboronexport at�the OSCE Court of�Conciliation and Arbitration in�Geneva.

"We continue to�negotiate with�the Russians on�recalling a lawsuit on�S-300 that was filed by�Tehran after�Russia refused to�transfer the systems on�a specified date."

Russian President Vladimir Putin lifted the ban on�S-300 deliveries in�April shortly after�the P5+1 group of�international negotiators and Iran had reached a framework nuclear agreement.

A source familiar with�the situation said in�mid-June that Russia and Iran were in�talks on�resuming the implementation of�the S-300 delivery contract. According to�the source, Russian officials insisted on�the withdrawal of�the lawsuit and signing of�a new contract instead.

"We touched upon�the issue of [introducing] amendments to�the contract, the new prices to�be set, and discussed the mechanism of�the lawsuit withdrawal," he added.

By Sputnik News