Iran has reserved the right to seek compensation for the seizure of a shipload of cargo by Cyprus at the direction of the United Nations Security Council, which says the goods are an illegal arms shipment.

Iranian officials have denied that the shipment on board the Cyprus-flagged MV Monchegorsk was weaponry, but have not said what it was. The ship was detained off Cyprus on Jan. 29 after it was boarded by U.S. naval personnel in the Red Sea.

A UN sanctions committee accused Iran last month of violating a U.N. ban on its import or export of arms. The ban is contained in a 2006 Security Council resolution aimed at pressuring Iran to suspend its nuclear enrichment program.

In a letter to Iran at the time, the committee said the Monchegorsk, chartered by the Islamic Republic of Iran Shipping Line, was carrying bullet shells, high-explosive gun charges, items related to 125 mm armor-piercing guns and high-explosive anti-tank propellant.

It said the ship's documents indicated the material was headed for Syria, although council diplomats say its final destination remains unclear. Some have said it might have been headed for Lebanon or the Hamas-ruled Gaza Strip.

In a letter to the Security Council made available on Monday, Iran's UN Ambassador Mohammad Khazaee said the ship's cargo "falls within the framework of normal trade transactions and any allegations to the contrary are baseless."

"Accordingly, measures that have been taken in intercepting the ship's cargo and storing the said vessel's shipment have no legal basis, and the right to seek compensation through appropriate mechanisms remains reserved in this regard," the April 1 letter said.

Khazaee did not identify the cargo or elaborate on how Iran might seek compensation.

In Nicosia, a senior Cypriot government source said the cargo remained in Cyprus, although the ship has been released.

"In due course a decision has to be taken" on the cargo, said the source, who asked not to be identified. "According to the UN Sanctions Committee it shouldn't go to either Syria or Iran. It's for us [Cyprus] to decide in consultation with the UN Security Council."

The United States and its European allies suspect Iran is developing nuclear weapons under cover of a civilian atomic energy program. Tehran says its program is peaceful but refuses to suspend nuclear enrichment that could produce bomb fuel.

Khazaee reiterated that Iran's nuclear program "poses no threat to international peace and security and, therefore, does not fall within the Security Council's purview by any stretch of law, logic or interpretation."

"[UN] member states have the right to free maritime navigation, free shipping and international trade, and any measures that would negatively affect these rights ... are unwarranted and must be avoided," he said

Source: Reuters