In July 1993 Russia decided to suspend a contract signed more than two
years before, that would have supplied cryogenic rocket engines and r
elated technologies for India's civilian space program. Moscow's decis
ion to second guess the original deal was reached on the eve of U.S. e
conomic sanctions that would have gone into effect should Russia have
decided to honor its agreement. The United States had threatened to im
pose an embargo on grounds that the proposed Russian sale would violat
e the Missile Technology Control Regime (MTCR), one of its major post-
cold war foreign policy considerations. The importance of the suspende
d deal lies in its multiple ramifications and some of these are explor
ed in this article. Among others, the aborted contract indicates shift
ing alliances in the post-cold war world as the established Indo-Sovie
t/Russian bond has weakened and Moscow and Washington have moved towar
d greater cooperation and understanding. It even may have had the effe
ct of motivating India toward developing cryogenic rockets indigenousl
y and also acquiring an arsenal of nuclear weapons. Should that happen
the security issue in South Asia will acquire a new dimension as Paki
stan may follow suit, setting off a chain reaction whereby other count
ries with nuclear ambitions may wish to satisfy them, and, in the proc
ess, severely undermining the Nuclear Nonproliferation Treaty (NPT) an
d MTCR.