The government gave a positive answer to the suggestion of signing agreement “between the Government of the Republic of Armenia and the Russian Federation on providing a state export credit”. Pursuant to it, Russia will provide Armenia with 100 million USD nes state export credit for the purpose of acquiring modern military equipment and technologies, funding of delivery. By the mentioned agreement it is envisaged to give 100 million USD included state export credit for 20 years, 5 years of which for privileged 3% interest rate.
According to the agreement, co-financing is envisaged by Armenia for 10% of the cost of the contracts-to-be-signed within the framework of the agreement. Armenian side will use the credit from 2018 to 2022.
The agreement holds that advance payments amount to not less than 10% of the cost of each contract and are fulfilled by the Armenian side in favor of Russian authorized organizations via USD.
Separate agreements will be signed between the Ministry of Defence of the Republic of Armenia and “Rosoboronexport” OJSC on the order, deadlines, the provision of information on the usage of that military technology, the obligations of the sides, the responsibilities for repair and technical services, purchase and other issues to the Republic of Armenia.
Armenian side uses the credit for up to 90% financing of per cost of the contracts on calculated product supply – signed between the Russian and Armenian organizations mentioned in the contracts in accordance with Article 8 of the current agreement.
The military equipment provided via credit will be supplied according to the list defined by the agreement, and as it is mentioned in the agreement, the list can be changed pursuant to a bilateral written agreement between the Ministry of Defence of the Republic of Armenia and the Federal Service for Military-Technical Cooperation.
Let us remind you that an agreement was signed between Armenia and Russia in 2015 for the provision of 200 million USD credit for acquiring military equipment, whereby a part of the armament is already supplied.
Nelly BABAYAN
