President of Bashkortostan Murtaza Rakhimov and his counterpart from Chechnya, Alu Alkhanov, signed the document in Ufa, the Bashkir capital.
Rakhimov said the agreement would encourage the development of cooperation in the oil production sector and agriculture. Bashkortostan currently exports to Chechnya output from its chemical and oil-chemical industries, food, medicines, and books, while it also provides social assistance to Chechnya.
Chechens undergo treatment in Bashkortostan's hospitals and 150 Chechen students and post-graduates study in the republic's higher education establishments.
Alkhanov said in turn that Chechnya constantly studied Bashkortostan's experience in economic development, state building, and interethnic relations.
He said the Bashkir economic model was developing in Chechnya. This primarily meant the establishment of a favorable innovation and investment climate, as well as the development of the fuel and energy and construction sectors, he added.
