UK ordered to pay $650 Million to Iran

alJazeera Magazine

UK ordered to pay $650 Million to Iran

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

The British government has confirmed the court's ruling and that the compensation money for Iran is now sitting in bank accounts waiting to be withdrawn, ABC reported on Sunday.

Between 1971 and 1976, the Shah of Iran had ordered 1,500 state-of-the-art Chieftain battle tanks and 250 military vehicles costing £650 million, The Independent reported.

The deal was canceled after the Islamic Revolution in 1979 and Iran took Britain to court to reclaim the down payment.

The Independent has revealed that Britain is to pay back nearly 400 million pounds to Iran's Defense Ministry after finally admitting defeat in the dispute.

According to The Independent report, the settlement between International Military Services (IMS) Ltd, the company used by the British Ministry of Defense to strike the tank deal with the Shah in the 1970s, and Iran's Defense Ministry will be finalized in the coming weeks.

MGH/MTM/HRF

Source: Press TV