Saudi King Makes First State Visit to Russian Federation
06 Октября, 2017, 00:39 | Author: Dustin Murphy
The Saudi king will stay in Moscow till October 7.
Saudi Arabia and Russian Federation helped secure a deal between the Organization of the Petroleum Exporting Countries and 10 rival suppliers to cut output until the end of March 2018 in an effort to reduce a glut.
Saudi Arabia started preparing for the visit of the 81-year-old monarch, who rarely travels outside his country, several years in advance.
The talks took place against a hard political backdrop.
Tass reported that Moscow is hoping Saudi Arabia investment in Russian Federation will surpass $1 billion after the visit.
Though a rally in September helped propel oil into a bull market, prices have slipped back amid concern the market remains oversupplied despite cutbacks by OPEC and its allies including Russian Federation.
Observers say Riyadh's decision to boost ties with Moscow reflects the expanded clout Russian Federation has won in the Middle East with its military blitz in Syria.
The Saudi king is in Russia to discuss the global oil market and Syrian crisis with Russian President Vladimir Putin.
Saudi Aramco's IPO is expected to be the world's biggest ever offering, with the company valued at a minimum of about USD2 trillion. Total volume traded was 35% below the 100-day average.
The two countries also agreed to cooperate in nuclear energy, agriculture, information technology; trade, investments and social development. "The market can absorb it", he said, speaking at an energy forum in Moscow.
King Salman's visit to Russian Federation has been widely interpreted as a sign of Russia's growing influence in the Middle East.
A plan to list Saudi Aramco in 2018 is on track, senior Saudi officials said in Moscow on Thursday, as Saudi Arabia gears up to sign a string of investment agreements with Russian Federation.
Defense was another topic.
Russian Federation agreed to help the kingdom develop its own military industries including a plan to "localise the manufacturing and sustainment of parts of the S-400" system and the of the Kalashnikov automatic rifle and its ammunition in Saudi Arabia, Sami said. However, no contracts have been signed yet.
Saudi Arabia is the country that buys the most United States arms and Washington and Riyadh in May announced a US$110 billion deal to sell weapons to Saudi Arabia.
Earlier this year Saudi Arabia pledged billions of dollars of investment in projects in Indonesia and Malaysia to ensure long-term oil supply deals. The parties discussed packages of agreements worth up to $20 billion, but no solid contracts were signed.
Navalny, a vocal critic of President Vladimir Putin, was jailed for 20 days on Monday for repeatedly violating laws governing the organization of public meetings and rallies.
"We have seen a steady reduction in inventories". Saudi Arabia had previously been opposed to the plan because it involves Iran.
Lower demand from U.S. Gulf Coast refiners that are still recovering from Hurricane Harvey in August has caused crude sellers to seek markets overseas, triggering shipments of 1.98 MMbpd, the highest level in weekly government data compiled since 1993.
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