Russia will freeze a contract to sell S-300 missile systems to Iran after the United Nations Security Council imposed a fourth round of sanctions on the Islamic Republic, Interfax news agency reported.
Iran signed a contract with Russia in December 2005 to buy at least five S-300 surface-to-air defense missiles . However, Russia has repeatedly delayed the delivery of the sophisticated defense system.
"Naturally, the contract to deliver S-300 missile systems will be frozen," Interfax cited an unidentified source in Russia's arms industry as saying.
Russian officials had said the sanctions would not prevent the sale of the S-300, which can shoot down several aircraft or missiles simultaneously.
The Security Council approved a fourth round of sanctions against Iran on Wednesday.
UN vote came despite Turkey-Brazil efforts that yielded a nuclear swap deal with Iran.
Turkey and Brazil voted against it while Lebanon abstained. However, there were 12 votes in favor of the resolution.
Iran had warned Russia over the the deal.
Russia would lose its credibility if it fails to fulfill a contract to deliver the S-300 defense missiles to Iran, Tehran's ambassador to Moscow said.