New Delhi, 26 December 1970
The Government of India and the Government of the Union of Soviet Socialist Republics,
NOTING with satisfaction the successful development of trade relations, and
BEING desirous of further increase in the volume of trade between the two countries,
HAVE agreed as follows :
Both Governments will, in every possible way, develop and strengthen the trade relations between the two countries on the principles
of equality and mutual benefit. They will study and with utmost goodwill, take decision on the suggestions which either of them
would like to present for the consideration of the other with the purpose of achieving closer trade and economic relations.
(i) Both Governments will accord upon importation and exportation of goods from one country to the other maximum facilities allowed
by their respective laws, rules and regulations.
(ii) Both Governments will accord each other full most-favoured-nation treatment in respect of customs duties and charges of any
kind imposed on imports or exports or in connection therewith, in respect of the methods of levying such duties and charges in respect
of rules, formalities and charges in connection with customs clearing operations and with respect to the application of internal
taxes and other charges of any kind imposed on or in connection with imported goods.
(iii) Both Governments will accord to each other in respect of the issuance of import and export licences, where such licences are
prescribed under their regulation, treatment no less favourable than that granted to any other country.
Any advantage, favour, privilege or immunity granted by either of the Governments to import or export of any product originating
in the territory of a third country or destined for its territory, shall be accorded immediately and unconditionally to the like
product originating in the territory of either India or the Union of Soviet Socialists Republics or destined to be imported into
The provisions of Articles 2 and 3 shall not, however, apply to the grant of continuance of any :
(a) advantages which are or will be accorded by either Government to contiguous countries with purpose of facilitating frontier trade;
(b) preferences or advantages accorded by India to any third country, and existing on December 2nd, 1953 or in replacement of such
preferences or advantages that existed prior to the 15th August, 1947;
(c) advantages which India has granted or may grant in future to one or more developing countries in connection with its participation
in any agreement or the development of trade and economic co-operation among the developing countries.
Juridical and physical persons of either country shall enjoy the most-favoured-nation treatment in respect of personal protections
and protection of property when effecting commercial activities in the territory of the other provided that the enjoyment of this
treatment shall be subject to the laws and regulations of such other country which are generally applicable to all foreigners alike.
The export of goods from the Union of Soviet Socialist Republics to India and from India to the Union of Soviet Socialist Republics
during the period of validity of this Agreement will be carried out in accordance with the Schedules “A” and “B” attached to this
Agreement. These Schedules can be amended or supplemented by agreement of both Governments.
The provisions of the present Agreement do not affect the rights of the Indian physical and juridical parties and the Soviet foreign
trade organisations to conclude between themselves, subject to the import, export and foreign exchange regulations in force from
time to time in both the countries commercial transactions for the import or export of goods not included in the Schedules.
The import and export of goods stipulated in Article 6 will be carried out in accordance with the export, import and foreign exchange
regulations in force from time to time in either country and on the basis of contracts to be concluded between Indian physical and
juridical persons including Indian state-owned organisations on the one side and the Soviet foreign trade organisations on the other.
1. All payments of a commercial and non-commercial nature between India and the Union of Soviet Socialist Republics will be effected
in Indian rupees.
2. For the purpose of paragraph 1 of this article,
(a) the Bank for Foreign Trade of the Union of Soviet Socialist Republics will continue to maintain a Central Account with the Reserve
Bank of India and one or more accounts with one or more commercial banks in India authorised to deal in foreign exchange;
(b) the Central Account will be used for depositing the rupee balances and for replenishing the accounts with the commercial banks
and for operating transactions relating to technical credit;
(c) the accounts with the commercial banks in India will be used for carrying out all operations of commercial and non-commercial
3. (a) The Central Account will be replenished by transfers of funds from the account(s) with commercial bank(s) mentioned in sub-clause
2 above and by receipts on account of technical credit.
(b) The Account(s) with commercial bank(s) will be replenished by transfer of funds from other such account(s) mentioned in sub-cause
2 above and from the Central Account.
4. (a) Payments permitted in accordance with the Indian Exchange Control Laws and Regulations and the rules made thereunder will be
effected on the basis of this Agreement to the physical and juridical persons residing in the Union of Soviet Socialist Republics
by the physical and juridical persons residing in India, by crediting the amounts of such payments to the said account(s) to the
Bank for Foreign Trade of the Union of Soviet Socialist Republics with the commercial bank(s) in India.
(b) Likewise, payments permitted under the Union of Soviet Socialist Republics Foreign Exchange Control Laws and Regulations and
the rules made thereunder, will be effected by the physical and juridical persons residing in the Union of Soviet Socialist Republics
to physical and juridical persons residing in India by debiting the amount of such payments to the aid account(s) with the commercial
bank(s) in India.
5. The Reserve Bank of India and the Bank for Foreign Trade of the Union of Soviet Socialist Republics will jointly establish the
technical procedure of keeping the accounts under this Agreement.
6. Any balance in the Rupee Accounts of the Bank for Foreign Trade of the Union of Soviet Socialist Republics or any debt of the Bank
for Foreign Trade of the Union of Soviet Socialist Republics in connection with the grant of technical credit will, upon expiry of
this agreement, be used during the ensuing 12 months for the purchase of Indian or Soviet goods as the case may be or shall be settled
in such other way as may be agreed upon between the two Governments.
1. Both the Governments will render all possible assistance for the shipment of the goods exported and imported under this Agreement
from the country to the other as far as possible in Indian and Soviet ships.
2. Mercantile ships of either country with or without cargoes therein, will, while entering, staying in or leaving the ports of the
other country, enjoy the most favoured nation facilities granted by their laws, rules and regulations to ships under third country’s
This principle shall not, however, apply to ships engaged in coastal navigation.
Both the Governments shall consult with each other at the request of either Government as and when necessary in respect of matters
connected with the implementation of this Agreement.
Both the Governments will hold, as and when necessary, consultations for the exploration of new venues in the field of industrial
co-operation as well as for further utilization of existing and the creation of additional production capacities in each country
on a mutually beneficial basis with a view to bringing about further increase in bilateral trade.
Both the Governments will assist the development of co-operation between Industrial and Commercial enterprises in the two countries
for the purpose of pooling together their resources and know-how with a view to meeting their desire to jointly cultivating markets
in third countries and their needs arising from the programmes of industrial developments in third countries.
The present Agreement will come into force on January 1, 1971 and will remain valid for a period of 5 years.
The Agreement may be extended or renewed by negotiations between the two Governments.
DONE at New Delhi on 26th December 1970 in two original sets each in the Hindi, English and Russian languages, all texts being equally
L N MISHRA
N S PATOLICHEV
For the Government
For the Government of the
Union of the Soviet Socialist Republics
GOODS FOR EXPORT FROM THE U.S.S.R. TO INDIA
Machine tools and metal working equipment, including welding equipment
Power and electro-technical equipment for the following projects
Patratu, Harduganj and Balimela, mobile power stations (diesel and gasoline) turbines and
generators and electro technical equipment
Mining, oil drilling equipment and spare parts
Lifting and handling equipment, lifting cranes, including self-driven and bridge cranes
Steel mill rolls and partially machined rolls
Metallurgical equipment including equipment for foundry shops
Ball and roller bearings
Textile equipment for the manufacture of cotton, woollen and jute fabrics
Printing machines and equipment for Photoprint machines
Abrasive grains and cutting tools
Laboratory testing equipment, control measuring and optical instruments, scientific, apparatus
and metal testing machinery
Construction and earthmoving equipment, including excavators, dumpers, crawler tractors,
Spare parts to construction and earthmoving equipment
Repair equipment for technical servicing
Cinematographic and Studio equipment
Wheel tractors including “Belarus” T-40, T-25 components, agricultural machinery
Crawler tractors for agricultural purposes
Equipment and spares for mechanised farms
Miscellaneous agricultural machinery
Spare parts for tractors and agricultural machinery
Sea and river ships, dredgers, marine engines and other equipment including tankers “Valikij
Oktjabrj” type 16300 DWT, Cargoship “Bejetsa” type 13600 DWT
Air transportation means including helicopters other equipment and spare parts
Components and equipment needed for manufacturing programme of Soviet assisted Projects
(completed and under construction) and replacement for the projects
Spare parts to the equipment delivered for projects built with the USSR assistance
Other Machinery and equipment including the above mentioned, equipment for chemical
industry, food processing industry, crushing, grinding and dressing equipment, pumps and compressors and equipment for electronic
Equipment for All India Radio
Equipment for coal-based Fertilizer Plants
Oil and lubricants
Rolled Steel products
Galvanised Steel sheets
Copper and rolled copper products
Rolled Bronze products
Chemicals including reagents and laboratory chemicals
Muriate of Potash
Medical and Veterinary Equipment and Instruments including dental equipment
Books and periodicals
(including pedigree sheep)
GOODS FOR EXPORT FROM INDIA TO THE USSR
Machinery and equipment manufactured at industrial enterprises built in India with the
assistance of the USSR (including excavators, container cranes, gear boxes and others)
Automobile storage batteries,traction and other batteries
Electric motors AC P.25-100 Kws
Small Hand Tools
Rolled steel products
Goat skins, raw, semi-tanned and tanned
Wire enamel (Lac Terebec)
Cashew kernels including consumer packs
De-oiled cakes including rice-bran cakes and compound animal feed
Fresh and canned fruits
Printed cotton cloth and other cotton piece goods
Bed-linen, towels and handkerchiefs
Raw materials for production of medicines
Handicrafts including scarves and kerchiefs (silk)
Aluminium Power Cables
Paints, enamels and varnishes including marine paints
Books and periodicals