Russia and Vietnam have agreed a groundbreaking deal in the energy sphere which has prompted speculation that the former Cold War allies are now intent on restoring close relations.
During a state visit to Vietnam by President Dmitri Medvedev, on the back of a regional summit, the Russian leader signed an agreement with his Vietnamese counterpart, President Nguyen Minh Triet, for the Russians to build a nuclear power station in Vietnam – the first for the south-east Asian country.
Mr Medvedev said: “If we reach the goals we’ve set, this power plant will account for a great share of Vietnam’s energy market and will allow it to develop as a modern state that not only produces and processes oil, but also uses other energy sources, which is very important in today’s world.”
He added: “Vietnam is actively developing in terms of construction, organisation of economy, fortification of defence and security, and also solving social issues. In all these areas Russia will assist Vietnam, which is our close friend.”
The deal, believed to be worth more than $5 billion (£3.10 billlion), was hailed by Vietnam’s president as a demonstration of how ties between Moscow and Hanoi are strengthening.
Mr Triet said: “The signing of an agreement on the construction of an atomic power plant in Vietnam demonstrates the special ties we have with Russia and, of course, the deal indicates the confidence which Vietnam has in Russia’s technology. We will continue to work together in the oil and gas industry, both in Russia and Vietnam.”
Defence ties were also strengthened during Mr Medvedev’s visit to Vietnam. Late last year, Hanoi concluded an agreement to purchase from Moscow six kilo-class submarines and 20 Su-30 fighter aircraft.
During the meeting between Presidents Medvedev and Triet, the Vietnamese side invited Russia to help modernise the Cam Ranh naval base, a deep-water port which, until 2002, Moscow leased for its navy.
It is believed by some military analysts that by inviting the Russians back to Cam Ranh the Vietnamese government is attempting to counter China’s growing influence in the South China Sea, which is a cause of tension between Hanoi and Beijing.
Other topics discussed by the Russian and Vietnamese delegations included Vietnamese participation in a post-Soviet customs union involving Russia, Belarus and Kazakhstan and the building by Moscow of a hydro-electric power station in Vietnam.
