Author Topic: Russian soft loans for military equipment  (Read 1609 times)

LionFlyer

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Russian soft loans for military equipment
« on: September 26, 2016, 07:31:19 AM »
http://thestandard.com.ph/news/headlines/217051/russia-arms-deal-eyed.html

Just wanted to highlight a common string that comes attached with Russian soft-loans are that they will dictate the type of equipment eligible.

They (Russia) want you to buy expensive, complex equipment using that loan, so that they can lock you in with the subsequent maintenance for the next 5 ~ 10 years. It's an important point, they don't want to client to buy 100,000 AKs or 10,000 RPGs or consumables like ammunition because these are once-off type purchases with no guarantee of occurrence.

Of course, it's not a given (Russia is practically throwing money at Assad) but they are no fools and there are obvious strategic reasons for their offer.