Moscow, 1 October: If Russia withdraws from the contract with Iran, this could be a goodwill response to the USA's decision not to deploy anti-missile defence elements in Europe, deputy head of the Centre for Analysis of Strategies and Technologies Konstantin Makiyenko told RIA Novosti today.

Russian Defence Minister Anatoliy Serdyukov told journalists earlier today that very soon the Defence Ministry will submit to the Russian president responses to the USA's initiative not to deploy anti-missile defence elements in the Czech Republic and Poland. Yesterday some foreign media reported that Russia is withdrawing from its contract to supply S-300 anti-missile systems to Iran in exchange for a contract to supply S-400 to Saudi Arabia.

"Russia's withdrawal from the contract with Iran could be regarded as Russia's response to 'resetting', and, for instance, the USA's decision not to deploy anti-missile defence elements in Europe," Makiyenko said.

In addition, he mentioned plans to sign a new treaty with the USA on strategic offensive arms in December 2009, when the level of mutual understanding between the sides will be very important. "If the sides build their relations on this positive note, this will have a beneficial impact on security in both countries and the whole world," the expert said.

At the same time he stressed that a withdrawal from the contract with Iran to supply S-300 could cost the Russian industry a loss of profit to the tune of 1bn dollars and 300-400m in penalties.

"In view of this Russia is entitled to expect that the USA will more vigorously support the contract with Saudi Arabia on supplies of S-400 and other military hardware, which, according to various estimates, could reach over 2bn dollars. (passage omitted)

So far, there has been no official confirmation of reports about the S-400 contract.

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