Russia to grant Armenia a new loan for the procurement of weapons

Photo: Sergey Chirikov, REUTERS

Russia will provide Armenia with a USD 100 million loan for the procurement of modern weapons. However, there are certain problems with the loan. A previous loan of double the amount for the same reason had been allocated to Armenia, though the country is yet to receive all the weapons procured. The loan itself has not been repaid either.

The new loan agreement has already been approved by the Armenian Cabinet of Ministers. As in the previous case, Armenia is granted the loan for the procurement of Russian weapons at special prices.

Experts in Armenia are not in a hurry to comment on the arms procurement agreement.

As they have pointed out, first of all it’s still unknown what types of weapons Armenia is going to procure. According to Artur Yeghiazaryan, a military expert, ‘Armenia shouldn’t necessarily buy the same types of weapons that Azerbaijan has.’

Secondly, Armenia has not received the weapons it purchased as part of the previous loan agreement which was signed back in 2015.

“There are alternatives to Russian weapons. There are world producers who offer better quality weapons. However, Russia seeks to keep Armenia fully dependent on it. It doesn’t want to lose its grip on Armenia, even if the matter concerns such insignificant amounts,” said Stepan Safaryan, a political analyst.

The Armenian side is expected to repay the loan at a 3% interest rate over a period of 15 years.