The contract was signed between Russia's Rosoboronexport and France's Thales company and concerns night-vision devices for Russia's T-90 tanks that will be manufactured under a licensed agreement at an optical-mechanical plant in Vologda, Russian media reported.

"Under the contract, Russia has the right to assemble thermal imaging systems for armored vehicles under license in Vologda, with the subsequent maintenance," said Igor Sevastyanov, head of the Russian defense company, according to RIA Novosti.

The terms of the contracts weren't specified.

"The first contract involves transfer of technologies to Russia, which now will have the right to produce officially licensed thermal imagers at Vologda Optical and Mechanical Plant," said Igor Sevastyanov, Rosoboronexport deputy director general.

The plant is to open next month.

The agreement was announced amid a $12 billion arms push by Russia, the world's second largest export dealer, to seek arms from foreign suppliers in a bid to boost its defense needs.

The Kremlin's search for foreign suppliers emerged after 5-day war with Georgia 2 years ago exposed weaknesses in Russian technology. Russian officials have said they would be seeking the bulk of the supplies from the European and Israeli markets.

Among the top procurements considered are four Mistral helicopter carriers from Paris's DCNS, a move that has unsettled both Moscow's neighbors and the United States.

Military experts explain that Thales has been a long-time partner of Rosoboronexport, which has been providing Russia with avionics equipment manufacturer in Russia. The company exports equipment and on-board systems for MiG-21, MiG-29, Su-30 MKI, Su-30 MKM, T-90 tanks, combat vehicles BMP-3 and many other systems, RIA Novosti reported.

Sevastyanov said the second contract signed in Paris between representatives of the defense giants would "provisionally" allow Russia to bring communications technology intended for integration into Russian armored vehicles for testing.

"Localized production will allow Russia to reduce production and maintenance costs by at least 5-10 percent and manufacture thermal imagers for civilian purposes in the future," the Moscow daily Pravda reported.

The thermal imagers due to be developed will require export permission from French authorities, while the list of potential customers will have to exclude so-called rogue states, officials said.

By some accounts, Russia lags 20 to 30 years behind the West in technology progress.

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