Russia to extend $1 bln loan to Bangladesh to buy Russian arms - Putin
MOSCOW. Jan 15 (Interfax) - Russia will extend a $1 billion loan to Bangladesh to buy Russian weapons.
"Our countries intend to expand military-technological cooperation. Russia will provide Bangladesh with a loan amounting to $1 billion, which will be spent on buying Russian weapons and military hardware," Russian President Vladimir Putin said following a meeting with Bangladeshi Prime Minister Sheikh Hasina in Moscow on Tuesday.
A source with a Russian organization dealing with arms export told Interfax-AVN earlier that Russia and Bangladesh did not plan to sign weapons contracts themselves during Hasina's visit to Moscow. "The two sides will discuss prospects for a loan of $1 billion for buying Russian weapons and, in the event of a positive solution, they will sign some memorandums," he said.
The source said Russia and Bangladesh are intensively building up their arms trade and their economic relations in general.
"Over the last few years alone, a shipment of [Mikoyan] MiG-29 fighters, several dozen BTR-80, BREM-K and BMM armored personnel carriers, and three [Mil] Mi-171Sh helicopters have been exported to that country. There are some new weapons contracts in preparation, but their signature is being delayed because Bangladesh doesn't have the money for it," the source said.
He did not specify what these contracts deal with but noted that Bangladesh is taking interest in Russian air defense systems, helicopters, and combat hardware for ground forces.
He said China is a strong rival of Russia on Bangladesh's weapons market: the Bangladeshi army and fleet have mainly been armed with Chinese weapons and military hardware ever since Bangladesh became independent.
The development of Russian-Bangladeshi military-technological cooperation has been somewhat impeded by the fact that, at certain periods of time, Bangladesh has had political tensions with India, which is a strategic importer of Russian arms.
"The extension of a large loan to Bangladesh for buying Russian weapons may significantly bolster our country's position on this market," he said.