As republics and regions from the volatile northern Caucasus to Siberia continue to campaign for greater autonomy, Yeltsin called the accord an example of "genuine federalism."
"We are now moving towards the fine-tuning stage in federal relations. We are agreeing exactly who answers for what," Itar-Tass quoted him as saying. Since the Soviet Union collapsed, Moscow has worried that some of the country's 89 semi-autonomous republics and regions might go their own way, taking rich natural resources with them.
Bashkortostan President Murtaza Rakhimov told a news conference the deal gave Bashkortostan rights to pursue its own foreign economic policies and establish links with other states.
Bashkortostan can also join international organizations and reach international agreements provided they do not contradict the Russian or Bashkir constitutions. The republic maintained rights to establish "general principles of taxation," form its own budget and have its own judiciary.
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