Yeltsin makes deal with India
NEW DELHI (AFP) - The Russian President, Boris Yeltsin, eager to forge a new relationship with India, slashed the huge Indian debt to the former Soviet Union by one-third yesterday and agreed to resume delivery of military spare parts.
The Indian Prime Minister, P V Narasimha Rao, said Mr Yeltsin's first visit here had ushered in a 'new era in Indo-Russian relations'. An Indian spokesman said the accord effectively reduced the amount India owes to Russia to dollars 8.4bn ( pounds 5.5bn) and extends the repayment period. The leaders signed a 20-year pact to replace the 1971 treaty of friendship and co-operation between India and the Soviet Union.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies