another report by FAS states that the deal was cancelled
@
Developereo
Strained Indo-Russian Relations
It was in this atmosphere of uncertain Russian foreign policy objectives that the post-Cold War relations between Russia and India were further strained by two events. The first of these destabilizing events centered around a contract dispute between the Russian space directorate "Glavkosmos" and the government of India for the purchase of cryogenic engines and the related technology. The contract, signed on 18 January 1991, stemmed from India�s desire to gain knowledge of the liquid oxygen propulsion system of Russian cryogenic engines in order to advance India�s geo-synchronous satellite launch vehicle (GSLV) program. If produced indigenously and without Russian assistance, the project was forecast to require fifteen years until it would be operational. For Glavkosmos, the $350 million deal would provide crucial funds during a period of tremendous reductions in Russian defense expenditures.
Over the next two years, the United States protested the proposed transfer of missiles and technology to India on the grounds that the sale would violate the April 1987 Missile Technology Control Regime (MTCR). The growing threat of missile proliferation became well known to the United States following the Iraqi Scud missile attacks during the Gulf War and the testing of India�s Agni IRBM missile in 1989. However, the ability of the United States to coherently protest the sale was hampered by the changing of governments in Moscow as the Soviet Union collapsed and as the U.S. Executive Branch changed administrations from President Bush to President Clinton.
From the Indian and Russian perspectives, the cryogenic engine deal was legal under the MTCR on the grounds that the treaty did not block the support of "peaceful space ventures." Furthermore, India asserted that U.S. attempts to block the sale were financially motivated since General Dynamics and the French space-booster manufacturer Arianespace had both been outbid by Glavkosmos.
The new Russian government under Boris Yeltsin promised India�s leadership that it would not give in to U.S. diplomatic pressure. This promise was compromised, however, after the United States applied sanctions in May 1992, and threatened further economic measures. On 16 July 1993, Boris Yeltsin agreed to suspend the transaction and to alter the nature of the transfer to the sale of only the cryogenic engines and not the technology. In exchange, Glavkosmos was given bidding rights on over $950 million worth of future U.S. space projects.
While the ability of India to indigenously produce GSLVs and ICBMs was delayed by several years due to the cancellation of the original cryogenic engine deal, the main concern in New Delhi was that the Yeltsin government had given in to Western pressure. "The conclusion they drew was that Russia�s overriding need for American economic aid would make it susceptible to American pressure. In Indian eyes, Russia is unreliable, and it has also lost its international stature." As Indo-Russian relations appeared to weaken under Western pressure, direct bilateral interactions between the two states also revealed tensions.
INDO-RUSSIAN MILITARY AND NUCLEAR COOPERATION