Saudi King to arrive in Russia on state visit

MOSCOW, October 4. /TASS/. King Salman bin Abdulaziz Al Saud of Saudi Arabia will begin his state visit to Russia on Wednesday. During the Saudi monarch’s first visit to Moscow, the sides are expected to discuss key bilateral and regional problems and sign a number of important deals in energy, infrastructure, modern technologies and other sectors, which, according to experts, may bring relations between the world’s two biggest oil producers to the level of a strategic partnership. Saudi Arabia’s King Salman bin Abdulaziz Al Saud is due to arrive in the Russian capital on Wednesday’s afternoon and is expected to meet with Russian President Vladimir Putin on October 5. The Kremlin press service said President Putin and Saudi Arabia’s king "plan to discuss the whole range of issues on Russian-Saudi cooperation. The leaders will consider joint moves towards giving a further boost to bilateral cooperation within trade-economic, investment and cultural-humanitarian sectors". The sides will also exchange opinions on international matters. "Special focus will be on the situation in the Middle East and in North Africa with an accent on the settlement of conflict situations persisting in the region," the press service said. Joint documents are to be signed after the talks. The Russian president’s official spokesman, Dmitry Peskov, stressed that Russia has long-running ties with Saudi Arabia, which Moscow values. "There are very broad prospects, and the potential is far from being fulfilled. Now both sides are showing political will to contribute to developing business contacts," he said. "The relations between Moscow and Riyadh are absolutely self-sufficient and in this case there is no need to draw any parallels, this is a separate vector of our foreign policy, given the important role of Saudi Arabia in the region and in the Arab world in general," Peskov added. On October 6, the Saudi King will meet with Russian Prime Minister Dmitry Medvedev. "Dmitry Medvedev and King Salman bin Abdulaziz Al Saud will address topical issues of bilateral cooperation in trade, economy, industry, energy, agriculture and discuss the implementation of major joint infrastructure projects," the government’s press service said. The visit will continue until October 8. Perspectives of economic cooperation Russia and Saudi Arabia, which jointly account for 25 percent of the global oil output, in September last year signed an agreement on joint actions to maintain stability in the oil market. This deal made possible an agreement on reducing production, signed by oil-producing countries on November 30, 2016. In May 2017, the arrangements were extended for another nine months. The joint work on the agreement created new opportunities for economic cooperation between Russia and Saudi Arabia. General Director of the Russian Direct Investment Fund (RDIF) Kirill Dmitriev told reporters earlier that Saudi Arabia's investment in Russia will exceed $1 bln after the announcement of new landmark deals during the Saudi king's visit. "The investment of Saudi partners by the time of the visit will have already totaled $1 bln and we will announce new deals that will increase this figure," Dmitriev said. In 2015, RDIF and Saudi Arabia’s Public Investment Fund (PIF) have signed a decree to set up a joint $10 billion fund, which has already invested in projects in agriculture, real estate, infrastructure and the oil and gas sector. "This is a very important visit, the King will be accompanied by a very impressive delegation of ministers and businessmen. We believe that this meeting will take Russian-Saudi Arabian relations to an entirely new level," Dmitriev said. At the same time, the trade turnover between the two countries remained relatively small. According to the Russian Economic Development ministry, bilateral trade increased by 30% in the first half of 2017 compared to the same period last year, amounting to $430 mln. However, according to most experts, these figures do not correspond to the potential of trade and economic cooperation between the two states. "We see a very significant interest in investing in Russia not only from the Saudi Arabia, but also from our companies to work in Saudi Arabia," Dmitriev said. Within the framework of the Saudi monarch’s visit, a joint investment forum will be held, bringing together more than 200 companies. The list of participants includes the world’s biggest oil company Saudi Aramco, as well as Russia’s Gazprom Neft, Sibur, Aeroflot and PhosAgro. The Saudi delegation’s visit will also coincide with the Russian Energy Week forum in the Russian capital, in which a half of all OPEC energy ministers are expected to take part. Russia’s expectations Moscow expects the visit to give a powerful impetus to the development of bilateral relations. According to Russian Deputy Foreign Minister Mikhail Bogdanov, who is also the Russian president’s special envoy for Middle East and Africa, bilateral ties have been on the rise recently. The Russian diplomat said that Moscow viewed a regular exchange of opinions between the two states as a factor that contributes to stability and political settlement in the region. "We are convinced that this historic event - the visit - will give a powerful impetus to the development of bilateral relations," he said. Defense cooperation with Saudi Arabia Defense cooperation is expected to be among the issues that may be raised during the talks in Moscow. In recent years, Saudi Arabia showed interest in a wide array of Russian weaponry and military equipment, including T-90 tanks, infantry combat vehicles, air defense systems, short-range missile systems and combat helicopters, but no solid deals have so far been signed. In December 2015, Russian President Vladimir Putin said Moscow and Riyadh were considering joint multibillion defense cooperation projects. Rostec corporation chief Sergei Chemezov said in an interview with TASS in July that Russia and Saudi Arabia have signed a preliminary defense cooperation agreement totaling $3.5 billion. Saudi Culture week in Moscow During the visit by King Salman bin Abdulaziz Al Saud, the Russian capital will hold its first Saudi Arabia culture week. The event’s schedule includes an exhibition, demonstration of Saudi films, performances of a folk music group and a presentation of Saudi national cuisine. The head of Russia’s State Hermitage Museum Mikhail Piotrovsky told TASS that the top-level visit may create new possibilities for cultural cooperation. "Many of our cultural projects, including State Hermitage Museum exhibitions in Saudi Arabia, are now being discussed. No decisions have been made so far. Let’s hope that after King Salman bin Abdulaziz Al Saud’s visit to Russia, we will get fresh opportunities in the domain of the cultural exchange," he said. The Saudi Arabia’s Committee for Tourism and National Heritage and the State Hermitage Museum have already discussed joint archaeological expeditions, as well as exhibitions and restoration projects. However, their implementation is yet to begin. Read more