Russia, Saudi Arabia Pledge To Boost Ties During King's Landmark Visit
07 October, 2017, 00:47 | Author: Dustin Murphy
While Saudi Arabia made no firm pledge yesterday to extend the deal between the Organisation of the Petroleum Exporting Countries (Opec), Russia and other producers on cutting supplies, it said it was "flexible" regarding Moscow's suggestion to prolong the pact until the end of next year.
Riyadh has agreed to purchase S-400 air defense missile system from Russian Federation, according to Saudi television station al-Arabiya.
Cooperation between the world's two largest exporters, as well as other OPEC members, has helped stabilise global oil prices in recent months at around $50 a barrel.
Russian Energy Minister Alexander Novak said in an interview broadcast on October 2 that the planned $1-billion fund to invest in energy projects was part of efforts to strengthen cooperation in oil, gas, electricity, renewable energy and other projects. He also said he had accepted the king's invitation to visit Saudi Arabia.
"I think these fundamental mutual interests will sooner or later change the nature of Russian-U.S. relations for the better", Putin said. The agreement was due to expire in March 2018.
Saudi Arabia and Russian Federation are heavily dependent on oil exports and the plunge of the price of crude that began in 2014 lashed both of their economies.
Selman bin Abdulaziz, first king of Saudi Arabia to visit Russian Federation, arrived in Moscow yesterday for three-day formal talks.
The King concluded his speech by officially inviting the Russian president to visit the Kingdom and to continue consultations towards the issues of common interest and enhance bilateral cooperation between the two countries in all fields.
Moreover, he underlined the importance of maintaining the territorial integrity of Iraq, in a clear allusion to Iraqi Kurdistan, which on September 25 held an independence referendum. Mr Putin expressed hope that it would boost ties between the two countries.
Reports say the deals range from an arms deal worth $3bn (£2.3bn) to a $1bn energy investment fund.
Beyond short-term market drivers, analysts at Barclays said future oil demand could be undermined by improving fuel-efficiency and the rise of electric vehicles (EV).
Salman, who landed at Moscow's Vnukovo airport around 1600GMT is expected to focus his three-day trip on energy and the Syrian conflict, reports suggest.
The escalator stopped midway, forcing the king to walk down himself, to be met by Russian officials including deputy prime minister Dmitry Rogozin and a military brass band.
The foreign minister of the Kingdom of Saudi Arabia confirmed that the Kingdom supports the efforts of the UN envoy to Yemen to find a solution based on the GCC initiative, the Yemeni national dialogue outcomes and the UN Security council resolution 2216.
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