Russia, Vietnam sign major deals

MOSCOW, Dec. 16 (UPI) -- Visiting Vietnamese Prime Minister Nguyen Tan Dung said in Moscow his country will buy submarines and aircraft from Russia.

"Vietnam has signed a contract to buy submarines, aircraft and other military equipment with the Russian side," he told reporters Tuesday after meeting with Russian Prime Minister Vladimir Putin, RIA Novosti reported.

The report said the terms of the deal were not disclosed but previous reports had said Russia planned to sell Vietnam six Kilo-class Project 636 diesel-electric submarines, worth about $1.8 billion. The submarines are reported to be among the most silent vessels designed for anti-shipping and anti-submarine operations in shallow waters.

Vietnam also was reported to have ordered patrol boats and frigates, the report said, along with Sukhoi Su-30MK2 fighter jets.

Vietnam, which now becomes a major buyer of Russian arms, has maritime issues with China and other countries in the South China Sea. An expert told the BBC the submarine orders would boost Vietnam's negotiating position in those disputes.

China's Xinhua news agency, quoting Russian media, reported Moscow also will build Vietnam's first nuclear power plant.

Vietnam News quoted Dung as saying he and Russian President Dmitry Medvedev agreed to boost co-operation in energy, mining, finance and banking.