MOSCOW, Oct. 7 (Xinhua) -- Russia will compensate Iran for canceling the contract on supplying Teheran with the S-300 missile systems, the head of Rostechnologii holding Sergei Chemezov said on Thursday.

According to Chemezov, Russia will pay Iran 800 million U.S. dollars, RBC news agency reported.

He added that those S-300 might be re-dispatched to some other countries.

In September, Teheran threatened to sue Russia for not fulfilling its contract obligations after Russian President Dmitry Medvedev signed a decree banning any military cooperation with Iran in accordance to the UN Security Council's resolution No.1929.