Azernews.Az

Russia has expressed ``disappointment`` over the Azerbaijani stance in talks on extending its lease of the Gabala radar station and is likely to withdraw from the facility if no progress is made, a Russian Defense Ministry official has said.

The giant Soviet-era radar station, located in north-western Azerbaijan, has been leased by Moscow under a 10-year agreement which expires in December 2012.

Russia`s Kommersant newspaper reported in February that Azerbaijan is seeking to raise the lease payment to a staggering $300 million from the current $7 million per year.

But the Russian Defense Ministry official, who asked not to be named, said the proposed fee is inadequate, as this amount allows to build a new radar station instead.

Armenian Prime Minister Tigran Sargsyan said earlier that if Moscow does not reach agreement with Baku on the issue, Armenia is ready to provide a location for Russia to build a new facility on its soil.