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Saudi King's Russian Federation visit historic by all standards

07 October 2017

The fundamental mutual interests of Moscow and Washington, including fighting terrorism, will help to improve their relations, Russian President Vladimir Putin said Wednesday. Mr Putin expressed hope that it would boost ties between the two countries.

In reply to the question about possible consequences from Turkey's warning that it could cut oil supplies from Iraqi Kurdistan in connection with the referendum, Putin said this "will tell on global energy markets, pushing the prices up".

Al Arabiya has announced that Saudi Arabia and Russian Federation agree to purchase S-400 missile defence system.

Russian Federation would like Saudi Arabia to become a shareholder in the project but the source said there were also other roles the kingdom could take.

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King Salman has become the first sitting Saudi monarch to visit Russian Federation.

"The bill for fully booking the two hotels during the visit may run about $3 million, not including what the delegation will spend on services, restaurant meals and spa treatments", said Vadim Prasov, vice-president of the Federation of Restaurateurs and Hoteliers of Russia.

"Yes, we had a couple of phone conversations on various issues of mutual interest, including Syria", Putin said at the Russian Energy Week conference in Moscow.

"We strive to continue positive cooperation between our countries to achieve stability in the world oil markets, which contributes to the growth of the world economy", he said.

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King Salman, on his part, said he was happy to visit Russian Federation and expressed his willingness in strengthening relations in matters of peace and security and his interest in the development of the global economy.

The commentator further pointed out to Russia's willingness to establish contacts with all sides in the Middle East in order to find solutions for regional problems.

The two countries also signed a series of multi-billion dollar investment deals including one to create a USD 1 billion fund to pursue energy projects.

The price of oil collapsed from near $120 a barrel in June 2014 due to weak demand, a strong dollar and booming United States shale production.

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A slew of investment agreements would be signed during King Salman's trip and plans for a $1-billion fund to invest in energy projects are likely to be finalised then, as part of efforts by two of the world's biggest oil producers to expand cooperation.

Saudi King's Russian Federation visit historic by all standards