The deal was signed on Wednesday in Moscow, as Chinese President Xi Jinping and his Russian counterpart Vladimir Putin looked on.
China has been championing Huawei, the world’s biggest telecoms gear provider, as a national star as the company fights US pressure on many countries to exclude it from new 5G networks. US officials say Huawei is a security risk.
MTS said in a statement that it plans to work with Huawei on developing 5G technologies.
Mr Xi is on a state visit to Russia as the two countries grow increasingly close while each contends with friction with the US.
He will also attend a major investment conference in St Petersburg on Friday.