The Armenian government has approved the signing of a new military loan agreement with Russia, according to the Public Radio of Armenia.
Russia will provide Armenia a $100 million loan, for use in financing the acquisition of military systems. Armenia will make use of the loan for purchases over the next few years.
There were no details on what systems Armenia will buy or further stipulations on the use of the financing, but the loan is to be repaid over 20 years, with a five year grace period. The loan carries an annual interest rate of 3 percent.
Earlier this year, Armenia’s Defense Minister, Vigen Sargsyan, noted that Yerevan was interested in new military systems. Sputnik International quoted him as saying, “We are interested in military equipment that could balance Azerbaijan’s growing [military] arsenals and prevent the use of a number of weapons systems deployed on combat duty in Azerbaijan.”
This is the second military loan provided to Armenia from Russia in the last few years.
In June 2015, Armenia and Russia signed a $200 million loan agreement, which could be utilized to cover up to 90 percent of the cost of each product purchased. Armenia used that financing to purchase multiple launch rocket systems, anti-tank missiles, MANPADS, armored vehicle, and small arms. The loan also covered upgrade programs.