Russia has agreed to sell two nuclear power stations to India, defying calls to punish New Delhi because of its nuclear testing.
The head of Russia's Atomic Energy Ministry concluded the deal, which is worth $3 billion or more to Russia's cash-starved nuclear energy industry, on Sunday.The sale had become an important test of Washington's ability to marshal world opinion against India.
Following unsuccessful U.S. efforts to persuade Russia not to sell reactors to Iran or advanced anti-aircraft systems to Cyprus, the Indian sale has become another indication of America's limited influence with the Yeltsin government.
The United States tried to head off the sale even before India stunned the world by exploding nuclear devices in May. After India's nuclear tests, Secretary of State Madeleine Albright again urged Moscow to abandon the negotiations.
Since the Indians already have nuclear weapons, the construction of the plants themselves will have little military significance. But U.S. officials say they violate an important principle: that the world community should not engage in nuclear cooperation with aspiring nuclear-weapon states.
"This sends the wrong message to the world and to India and Pakistan," said James Rubin, the State Department spokesman. "Instead of pursuing business as usual, we should be scaling back this cooperation."
Indian officials, for their part, hailed the sale, saying it will help thwart the U.S.-led effort to impose economic sanctions.
The nuclear plants will be light-water reactors, meaning that ordinary water is used to moderate the nuclear reaction. A byproduct is spent fuel with plutonium and other highly radioactive products, which can be processed to make bomb ingredients.
Moscow has long enjoyed close ties to India. During Soviet days, Russia saw India as a counterweight to China, as well as a customer for weaponry.
India's rivalry with Pakistan was not a major worry for Moscow. Moscow had little love for Pakistan, which cooperated with U.S. efforts to funnel assistance to Afghan rebels following the Soviet invasion of Afghanistan.