Russia’s intention to lend Armenia $200 million to buy advanced weapons will adversely affect the peace process and help escalate tensions, the ministry said in a statement.

Baku has undeniable evidence that Armenia deploys weapons in Azerbaijan’s occupied territory to hide them from international inspection, the ministry said. 

Azerbaijan is seeking Russian assurances that the weapons will not end up in Nagorno-Karabakh and the adjacent Azerbaijani territory. 

The loan agreement released by the Russian government Friday said the 10-year export credit will cover the purchase of Smerch multiple rocket launchers, Igla shoulder-fired air defense missiles, TOS-1 thermobaric rocket launchers, anti-tank missiles and other weapons.

Armenia is part of several Russia-dominated security and economic alliances that include many ex-Soviet nations, and it hosts a Russian military base.