Azernews.Az

Some Russian media outlets, in particular, RIA Novosti agency, recently claimed that Moscow has agreed with Azerbaijan on extending its lease of the Gabala radar station, but these reports have no merit, a reliable source told Azerbaijan's Day.az website.

The reports said the parties are close to concluding a new contract for a term of three years with the same financial conditions, setting the lease at $7 million per year.

The source said that the two countries failed to reach an agreement though Baku's repeatedly stated position to increase rent of the Gabala radar station from $7 million to $300 million per year "is quite substantiated and corresponds to today's realities".

"Russian news agencies' continued unfounded speculative reports [such as groundless views and opinions of some experts] on the subject are nothing but an attempt to politicize this commercial agreement," the source said.

If Moscow decides to continue operating the Gabala radar station, Baku is ready to provide this opportunity for another three or five years, but with a new lease, it added.

The Gabala radar station, located in north-west Azerbaijan, was built during the Soviet period as one of the most important elements of the USSR's missile defense system. After Azerbaijan gained independence the radar station became the country's property but Russia continued to use it.

Previously, the Russian defense ministry reported it was holding negotiations with Azerbaijan to extend the lease of the Gabala radar station until 2025.

The term of lease of the Gabala facility will expire in December 2012.