Russia and India have signed an agreement for the construction of up to 16 Russian nuclear reactors at three different sites in India.

Russia's state-owned nuclear company will first build twelve plants. Six others will follow after 2012.

The agreement was signed during a visit to India by Russian Prime Minister Vladimir Putin.

The two countries also agreed to cooperate in the technology and banking sectors. Indian also agreed to buy 29 Russian warplanes.

Due to its rapidly growing economy, India has been experiencing an increasing demand for energy.

Observers say Russia is keen to strengthen its ties with India, which recently has stepped up commerce with the United States.