The development of military cooperation began on August 21, 1992, in Moscow when the presidents of Russia and Armenia signed a treaty on the legal status of Russia's Armed Forces in Armenia. On March 16, 1995, the two countries' presidents signed a treaty on a Russian military base in Armenia for a term of 25 years with an automatic extension if both sides agree.
There are 2,500 Russian military personnel in Armenia. The Armenia group of Russia's Federal Border Service is also deployed in Armenia. In keeping with a 1972 agreement, the group guards the republic's borders with Turkey and Iran.
The Declaration on Allied Interaction was signed in September 2000.
The Agreement on Questions of Joint Planning of Using Troops in the Interests of Ensuring Joint Security came into effect in January 2002.
On November 11, 2003, Russian Defense Minister Sergei Ivanov and Armenian Defense Minster Serzh Sarkisyan signed a plan for military cooperation in 2004 and two protocols concerning the location and the allotment of land for the 102nd Russian military base.
In keeping with the new accords, the Russian installations at Guimri will be combined into a single military complex. The numerical strength of the Russian base's personnel is about 3,000. It is Russia's largest military installation in the Caucasus.
Russia played the determining role in ceasing the armed conflict between Armenia and Azerbaijan over Nagorny Karabakh in 1994, and continues to provide assistance in settling the conflict.
Russia is, as before, Armenia's leading economic partner. According to Russia's Statistics Committee, in 2003 the goods turnover between the two countries increased by 34.5% to reach $203.3 million. Exports grew by 33.5% to reach $126.2 million, and imports grew by 36.2% ($77.1 million).
Russian exports grew largely because Russia supplied nuclear fuel and equipment to Armenia for its nuclear power plant, energy carriers, and rough diamonds. The export of Russian tobacco and chocolate products dramatically increased. Russia also imported a larger amount of aluminum, alcohol, and fruit and vegetable produce from Armenia.
Russia, which invested about $180 million in Armenia, is its largest investor. The Russian investors accounted for 40% of all investments made in Armenia in 2003.
According to Armenia's National Statistics Service, Armenia invested $91.83 million in Russia in 2003, $68.42 million of which were direct investments in the real sector of the economy.
Russian investments increase by 92.2% compared to 2002, with direct investments increasing by 9.73 times.
Russia invested in over 400 enterprises registered in Armenia.
Russia is Armenia's largest creditor. The republic's debt to Russia amounts to about $100 million.
The debt emerged mainly because of the Russian deliveries of nuclear fuel to the Armenian nuclear power plant. Armenia owes over $10 million to Itera for Russian gas.
In March 1999 on the 10th anniversary of a destructive earthquake in Spitak, Russia signed an agreement with Armenia on providing humanitarian aid to Armenia and in keeping with the agreement, part of Armenia's debt to Russia was written off.
In November 2002, the sides signed an agreement on settling Armenia's $93.7 million debt that transferred five Armenian industrial plants (the Razdan thermal power plant, the Mars factory, the scientific research institute of automatic control systems, the scientific research institute of mathematical machines, and the scientific research institute of materials technology) to Russia.
The fuel and energy sector remains the most promising sphere of Russian-Armenian cooperation. The Armenian nuclear power plant, which produces about 40% of all electricity in the republic, is the major cooperation project in this sector.
Electronics, instrument-making, transportation, engineering, iron and steel, and chemical production, as well as industrial cooperation and financial and credit relations are potential areas of future Russian-Armenian cooperation.
Fifty of Russia's 89 regions maintain trade relations with Armenia.
About 2 million Armenians live in Russia, Armenian newspapers are published in Russia, and there are Armenian schools in Russia. The Union of Armenians of Russia was set up in 2000.
The Russian-Armenian University that has about 1,200 students enrolled and six departments, is a positive example of cooperation in the sphere of education. Eleven branches of Russian state and non-state higher educational establishments operate in Armenia.
The Program of Cooperation in the Cultural Sphere for 2003-2005 was signed.
Days of Armenia's Culture were held in Russia in November 2001, and Days of Russia's Culture were held in Armenia in April 2004.
In June 2004, the National Television and Radio Broadcasting Committee of Armenia gave Kultoura (Culture) All-Russian state television channel a broadcast frequency in the republic.
Work to prepare a number of agreements in the fields of production cooperation, tourism, encouragement and protection of investments, and other areas is under way.
