The draft resolution before the UN Security Council called for holding Iran accountable for violating the arms embargo and included a council commitment to take action over it.
The draft also urged members of the council to take further action against Iran for breaching the arms embargo.
In a bid to win Moscow's support, the draft that was vetoed had been weakened to simply "note with particular concern" the violation, which was reported to the council by United Nations experts monitoring sanctions.
"That just validated a lot of what we already thought, which is Iran gets a pass for its risky and illegal behavior", Haley said.
Backed by the United States and France, the British-drafted resolution was supported with 11 votes in favour on Monday, before Russian Federation used its veto and other member states abstained from voting.
Russia, however, questioned the findings and blocked the resolution, saying the report did not contain conclusive evidence of Iran's violation of the arms embargo.
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"We don't have any illusions with regard to Iran's policy towards Israel, Iran's role in the region. and also what they do in terms of constructing ballistic missiles", the diplomat said.
He proceeded to say that the aforementioned countries had been using the mechanisms of the UNSC to cover up the "war crimes" committed by Saudi Arabia and its allies in Yemen.
Amir-Abdollahian stressed that Iran supports Yemen's unity and territorial integrity, and that political resolution involving all tribes and parties is the only way to get out of this crisis.
The Saudi-led coalition, which has intervened in Yemen's war since 2015 to try to restore president Abd-Rabbu Mansour Hadi to power, has conducted frequent air strikes and has often hit civilians, although denies ever doing so intentionally. Saudi Arabia views the Houthis as an Iranian proxy.
Russian Federation on February 26 vetoed a UN Security Council resolution condemning Iran over the alleged violations, with Russia's UN Ambassador Vasily Nebenzya calling its conclusions "uncorroborated". That resolution conspicuously avoided the issue of Iranian weapons in Yemen.