Russia provides $200 million arms loan to Armenia Friday, February 19, 2016 11:07:35 AM

Moscow and Yerevan have reached an agreement that will provide Armenia with $200 million to purchase Russian arms, according to the Russian government’s official legal data website.

"The Russian side is providing the Armenian side with a state export loan of up to $200 million for financing the delivery of Russian military products in line with the list contained in Appendix No1 to this agreement," the government website reported.

The 10-year agreement will cover the purchase of a variety of Russian arms, including Smerch rocket launchers, Igla-S air defense missile systems, Avtobaza-M radar jamming and deception systems, 9M113M guided missiles, Tiger armored vehicles, and more.

According to the terms of the loan, Armenia will have to cover 10% of all purchases, with the rest being covered by credit.

Armenia is home to two Russian military bases and 4,000-5,000 Russian servicemen. As previously reported, Armenia and Russia recently signed an agreement on the creation of a Joint Regional Air Defense System in the Caucasian Collective Security Region.

Armenia shares a 268 kilometer (167 mile) border with Turkey, and many believe that Russia’s renewed interest in Armenian defense is a direct response to Turkey’s downing of a Russian Su-24 bomber along the Turkish-Syrian border on November 24th of last year, which has led to a souring of relations between Moscow and Ankara.

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