Russian President Vladimir Putin, on a two-day official visit to Vietnam, met on Thursday with President Tran Duc Luong.

After the meeting, the two sides signed an agreement on the repayment of Soviet-era Vietnamese debt to Russia, Interfax news agency reported. Deputy Prime Minister Viktor Khristenko said that under the repayment scheme Vietnam will pay Russia some $100 million every year. The main part of the debt, as expected by analysts, will be paid back through business and trade concessions. Moscow had earlier estimated Vietnam's debt at 11 billion rubles and some 27 million dollars. During his visit, Putin is also to meet Prime Minister Phan Van Khai and Communist Party General Secretary Le Kha Phieu. Putin is the most senior Kremlin leader ever to visit a country that was one of Moscow's strongest ideological allies during the Cold War era. Military cooperation is also on the agenda of Putin's visit. According to the Russian president, Vietnam needs to upgrade its arsenal and Moscow is ready to supply military equipment to the country, without violating international regulations. Other potential fields for cooperation include oil and gas, telecommunications and atomic energy, Russian officials have been quoted as saying.