UK to pay compensation to Iran

The British government has confirmed that it has been ordered by the Hague arbitration court to pay $650 million to Iran as redress for a 1970's arms deal, reports the BBC.

London received prepayment from Iran in the course of the arms deal.
However, the Shah was overthrown soon afterwards and the deal was cancelled, reports RBC. Now, the Hague arbitration court has ordered the UK to pay compensation for this prepayment.

However, a spokesman for the British Government said that the money will be repaid only if the banking sanctions against Iran are repealed.