Saudi king in historic first visit to Russian Federation for talks with Putin

07 October, 2017, 00:48 | Author: Genevieve Gibbs
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This is the first visit to Russian Federation by a Saudi monarch and both the countries have already struck a deal on weapons' sale and how to stabilise the oil market.

Along with S-400 anti-aircraft missiles, Saudi Arabia is also set to buy Kornet anti-tank guided missile systems and multiple rocket launchers.

Addressing a plenary session of the Russian Energy Week, which kicked off in Moscow on October 3, he said the two countries share fundamental interests, including energy policies, fighting cybercrime, non-proliferation of weapons of mass destruction, anti-terrorism efforts and dealing with regional conflicts.

That would buffer drillers against losses if the price were to decline, which may spur more USA production - partially offsetting the OPEC-led deal to cut supply by about 1.8 million barrels per day (bpd).

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"This partnership between Russian Federation and Saudi Arabia has catalyzed cooperation of an unprecedented coalition of 24 countries (OPEC and non-OPEC)". Pointing to output from USA shale basins, the minister said any acceleration should more or less keep pace with demand. The agreement remains in force until the end of March 2018.

Saudi Arabian King Salman bin Abdul Aziz harshly criticised Iran on his first visit to Russian Federation, which has close relations with the Islamic republic.

During the meeting, the Saudi king advocated the resolution of the crisis in Syria in accordance with the June 2012 Geneva Communique on the creation of a transition government with members of the Bashar Al Assad government and the opposition that guaranteed the territorial integrity of Syria.

King Selman's meetings in Moscow include energy market, Middle East, civil war in Syria and Iran.

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Novak said the two countries' business circles maintain intensive dialogue, and he pointed out that the Saudi delegation to Moscow included 85 chief executives of major Saudi companies.

On Wednesday, Russian energy minister Alexander Novak told TASS news agency that Saudi Arabia is investing $1 billion into energy projects in Russia though he did not give details or specify if these deals would be signed during the visit.

He and Russian president, Vladimir Putin, have been discussing trade deals, the crisis in Syria and the price of oil, among other topics.

"The two have been coordinating their efforts to cap oil outputs and therefore boost the price of energy, but of course there is the changing political structure of the Middle East too", he said. "Relations between Russian Federation and Saudi Arabia have reached an historical moment".

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Almost a year into the production-cut deal that brought together major OPEC and non-OPEC oil producers, Oil Minister Bijan Namdar Zanganeh said there was no pressure on Iran to join the cuts.

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