Russia to provide Armenia with $100 million in arms

 Russia to provide Armenia with $100 million in arms

Armenia and Russia signed weapons agreement worth $100 million, Armenian President Serzh Sargsyan said.

"We signed a new agreement in Yerevan, it should be ratified, after which the work with relevant Russian manufacturers will start," the Armenian president said, adding that until the end of the year they will be implementing the previous agreement, RIA Novosti reported.

According to the draft agreement that the Armenian government approved on 12 October, Russia will provide the Armenian side a state export credit for financing the supplies of Russian military products. The Armenian side uses the loan for financing up to 90% of the cost of each contract for the supply of products, calculated in dollars.

The prepayment shall be not less than 10% of the contract value and should be carried out by the Armenian side in favor of the commissioners of the Russian organizations. The draft agreement specifies that the loan is issued with a maturity of 15 years at 3% per annum. 

Moscow has already provided Armenia with a loan of $200 million for a period of 10 years. 

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