Armenia seeks debt adjustment with Russia over unfulfilled arms deliveries

Armenia is in discussions with Russia about revising its state debt, partly by recalculating funds already paid for military equipment that has not been fully delivered.

Finance Minister Vahe Hovhannisyan confirmed the development, stating, "The purchase was made; however, some deliveries were not fulfilled, while others were delayed," Caliber.Az reports via foreign media.

"Discussions are ongoing regarding a possible recalculation of a portion of the existing debt, but this process remains confidential," he stated.

The minister refrained from providing specific details, explaining that the Ministry of Defence is handling the matter. However, he acknowledged the broader context of mutual obligations between Armenia and Russia.

"There are bilateral commitments established during various stages of cooperation between our countries. Talks are underway about the possibility of recalculating these obligations," Hovhannisyan said.

When pressed on whether the recalculation pertains specifically to loans for military procurement, he declined to comment.

Armenian officials have previously raised concerns over unfulfilled arms supply contracts with Russia, despite payments being made. Estimates suggest that the undelivered equipment could be worth between $250 million and $400 million.

Armenian Prime Minister Nikol Pashinyan has also confirmed that negotiations are underway regarding the possible cancellation of part of the debt within the framework of these funds.

By Aghakazim Guliyev