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Saudi king, Putin eye energy, arms deals on landmark Russia visit
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Russian President Vladimir Putin (center right) and Saudi Arabia's King Salman bin Abdulaziz Al Saud (center left) attend a welcoming ceremony ahead of their talks at the Kremlin in Moscow on Oct. 5, 2017.
(Agence France -Presse/Yuri KADOBNOV / POOL /)
O
n a landmark visit to Russia, Saudi Arabia's King Salman and President Vladimir Putin were set on Thursday to clinch a host of multi-billion-dollar energy and defense deals despite discord over the Syrian war.
The first official trip to Russia by a Saudi monarch will also see the leaders of the world's largest energy exporters discuss an extension of an OPEC agreement to cap oil output.
"This is the first visit by a Saudi Arabian monarch in the history of our relations and that in itself is a landmark event," Putin said as he welcomed King Salman to Moscow in an ornate gilded Kremlin hall.
"I'm sure your visit will boost the ties between our countries," he said.
"We aim to strengthen our relations in the interests of peace and security, in the interests of developing the world economy," the Saudi king responded.
Citing Russia's energy minister Alexander Novak, the Financial Times reported that Russia and Saudi Arabia were expected to sign deals worth over $3 billion (2.5 billion euros), including a $1 billion energy investment fund and a $1.1 billion agreement for Russia's petrochemicals giant Sibur to build a plant in Saudi Arabia.
Russia's Kommersant business daily reported Putin and Salman were also due to discuss an arms deal worth more than $3 billion, to supply Riyadh with S-400 air defence systems.
Russia and Saudi Arabia are heavily dependent on oil exports and the global plunge of the price of crude that began in 2014 lashed both their economies.
OPEC members have joined with Russia and other countries in cutting crude output in a pact that has helped prop up prices.
Putin said on Wednesday it was possible to extend an OPEC deal to cap oil output "at least until the end of 2018".
The current agreement runs until March 2018.
"We strive to continue the positive cooperation between our countries to achieve stability on world oil markets which promotes the growth of the world's economy," Salman said in Moscow.
The leaders held one-on-one talks, followed by broader discussions. Once they sign the expected deals, Putin will host a state dinner for Salman.
"The political will of Moscow and Riyadh for deeper cooperation on the widest range of issues is clear," Putin's spokesman Dmitry Peskov told journalists ahead of the meetings.
