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07 October 2017, 12:46 | Kara Nash
MOSCOW Petroleumworld 10 04 2017
Vedomosti newspaper reported that Saudi Arabia's sovereign fund is also eyeing investment into a toll road project in Moscow, which would be the first one for the capital.
In a sign of the improving relationship, Saudi Arabia signed preliminary agreements with Russian Federation to buy S-400 air defence systems, as well as anti-tank weapons and multiple-rocket launchers, the Saudi Arabian Military Industries said.
The pact between the OPEC, Russia and other producers on cutting output by about 1.8 million barrels per day (bpd) is now due to expire in March.
Russian Federation and Saudi Arabia on Thursday also announced major investments and joint ventures to further cement relations, with Putin and Salman signing deals from arms sales to cooperation in space. Putin said. "I think that all things change".
The agreement requires OPEC and non-OPEC producers, led by Russian Federation, to cut a combined 1.8 million bpd in supplies through March to hasten the market's rebalancing.
Both Russia and Saudi Arabia rely heavily on oil revenues and were hit by the slump in world energy prices.
During his four-day trip, the king and Putin are expected to discuss the global oil market and the situation in the Middle East.
Russian President Vladimir Putin did not rule out Wednesday a possible extension to a landmark Opec agreement to cap oil output, speaking ahead of talks with the leaders of Saudi Arabia and Venezuela. In coming period, cooperation between two countries is expected to strengn in field of defence industry.
Saudi Foreign Minister Adel al-Jubeir told journalists that "relations between Russian Federation and Saudi Arabia have reached a historic moment".
He also said the two agreed on the importance of fighting terror and of finding peaceful solutions to conflicts in the Middle East.
The Saudi-Russian Summit saw the signing of a number of memorandums of understanding and joint investment deals worth several billion dollars for the establishment of Saudi-Russian platforms in the fields of military, energy, space, commerce, communication, technology, culture and investment.
The news from Moscow supported prices for oil, Russia's key export.
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