Armenian government approves attracting 100 mln USD loan from Russia for purchase of arms

Russia provides Armenia a new 100 million USD state export loan for the purchase of latest armament and equipment, as well as for financing the supplies.

The Armenian Government approved the proposal to sign an agreement between Armenia and Russia on providing state export loan to Armenia.

According to the agreement, the loan will be provided for 20 years, of which 5 will be a privileged with 3% annual interest rate. In addition, Armenia plans to provide co-financing 10% of the cost of contracts signed within the frames of the agreement in the form of advance payments.

Based on the provisions of the agreement, the Armenian defense ministry and Rosoboronexport JSC will sign separate contracts on the procedure, deadlines of providing modern armament and equipment to Armenia, the conditions of providing information on the use of military equipment, the obligations of the sides and other issues.

The signing of the agreement is in line with Armenia’s strategic interests and its implementation will serve the goals to strengthen Armenia’s security.

On June 26, 2015 a 200 million USD loan agreement on purchase of arms was signed with the Russian government which is still in force.