Translated by Ollie Richardson for Fort Russ
18th February, 2016
The government of Russia and the government of Armenia signed an agreement to grant Armenia a loan of up to $200 million for ten years with deferred payments until the beginning of 2018, reported the official website of legal information on Thursday.
The loan allocated is for the financing and the supply of military products from Russia.
According to the document, Armenia purchased Russian MLRS “Smerch” and ammunition, anti-aircraft missile complexes “Igla-S”, surface complexes of electronic jamming system “Avtobaza-M”, heavy flamethrower system TOS-1A with transport-loading machines, 9М113М guided missiles, rocket-propelled grenades RPG-26, Dragunov sniper rifles, armored “Tiger” cars, engineering tools and means of communication.
The report said that the list may be amended by mutual written agreement between the Federal service for military-technical cooperation and Armenian Defense Ministry.
The loan was used by the Armenian side to finance up to 90% of the value of each contract for the supply of products with settlement in Russian rubles. Advance payments amount to at least 10% of the value of each contract and are implemented by the Armenian side in favor of the Russian authorized entities in Russian rubles.