In 1938 Germany annexed Austria and, together with major Western European powers, signed the Munich Agreement following which Germany, Hungary and Poland divided parts of Czechoslovakia between themselves. German plans for further eastward expansion, as well as the lack of resolve from Western powers to oppose it, became more apparent. Despite the Soviet Union strongly opposing the Munich deal and repeatedly reaffirming its readiness to militarily back commitments given earlier to Czechoslovakia, the Western Betrayal led to the end of Czechoslovakia and further increased fears in the Soviet Union of a coming German attack. This led the Soviet Union to rush the modernization of its military industry and to carry out its own diplomatic maneuvers. In 1939 the Soviet Union signed the Molotov–Ribbentrop Pact: a non-aggression pact with Nazi Germany dividing Eastern Europe into two separate spheres of influence. Following the pact, the USSR normalized relations with Nazi Germany and resumed Soviet–German trade.