Talks with Russia on the purchase of BMP-3M infantry fighting vehicles were called off as of Nov. 22, the Anatolia news agency reported on Sunday, citing a statement on the website of the Greek Defense Ministry. According to the Greek media, this effectively means that the arms import plans, approved by the previous Greek government, have been cancelled. Media reports said that the increase in the estimated cost of the arms delivery, from 1.2 billion euros at the outset to 1.7 billion, was a key factor in why the Greek government cancelled the armament project. Greece, one of Europe's top military spenders, has said earlier that it would postpone any purchases of warships or fighter planes as it struggled to pull itself out of a financial crisis that pushed it close to bankruptcy.
Due to decades-long tension with Turkey, debt-ridden Greece has the EU’s biggest military budget as a percentage of gross domestic product, and the second highest in NATO after the United States. It is in talks with France over the purchase of six FREMM frigates, while Germany, France and others are eager to sell the country 40 fighter jets. However, Alternate Defense Minister Panos Beglitis, who is in charge of military procurement, said in an interview in June that Greece will hold off on any purchase.
