Saudi-Russian relations reach new heights

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Updated 06 October 2017
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Saudi-Russian relations reach new heights

MOSCOW: Russian President Vladimir Putin hosted Saudi Arabia’s King Salman for talks at the Kremlin on Thursday, cementing a relationship that is pivotal for world oil prices and could decide the outcome of the conflict in Syria. 
Putin received the monarch in the gold-decorated St. Andrew Hall, one of the grandest spaces in the Kremlin, attended by soldiers in ceremonial dress and with an orchestra playing their countries’ national anthems.
“I am sure that your visit will provide a good impulse for the development of relations between our two states,” Putin told King Salman as they sat alongside each other in the Kremlin’s lavishly decorated Green Parlor. “This is the first visit by a Saudi monarch in the history of our relations and that in itself is a landmark event,” Putin said.
The king invited Putin to visit his country — an offer the Russian leader accepted — and said they planned to keep cooperating to keep world oil prices stable.
King Salman told Putin that Iran must stop meddling in the Middle East, Russia’s Interfax news agency reported.
“We emphasize that the security and stability of the Gulf region and the Middle East is an urgent necessity for achieving stability and security in Yemen,” the king said.
“This would demand that Iran give up interference with the internal affairs of the region, to give up actions destabilizing the situation in this region.”
Saudi Foreign Minister Adel Al-Jubeir told journalists that “relations between Russia and Saudi Arabia have reached a historic moment.”
King Salman and President Putin signed a slew of arms and energy deals.
Saudi Arabia signed preliminary agreements to buy Russia’s S-400 air defense systems and anti-tank guided missile systems and receive “cutting-edge technologies,” the state-owned Saudi Arabian Military Industries (SAMI) said.
These agreements are “expected to play a pivotal role in the growth and development of the military and military systems industry in Saudi Arabia,” SAMI said in a statement.
The leaders of the world’s largest energy exporters discussed an extension of an OPEC (Organization of the Petroleum Exporting Countries) agreement to cap oil output.
The two countries signed a series of multibillion-dollar investment deals including one to create a $1 billion fund to pursue energy projects.
Moscow and Riyadh worked together to secure a deal between OPEC and other oil producers to cut output until the end of March 2018, helping support prices.
Saudi Energy Minister Khalid Al-Falih said Saudi Arabia is “flexible” regarding Moscow’s suggestion to extend the pact until the end of next year.
Agreements on global oil supply have helped oil markets to stabilize, Al-Falih said.
He said Saudi Arabia wants to develop ties with Russia further, particularly in the private sector.
“I see huge opportunities for the business sector in both nations,” he said.
Russian Foreign Minister Sergei Lavrov said agreements came in the fields of “energy — not only traditional but also nuclear power — and also in cooperation in space exploration (and) agro-industry and infrastructure projects.”
Later, speaking at a news briefing, Al-Jubeir said Saudi Arabia is working closely with Russia on uniting Syria’s opposition, adding that Moscow and Riyadh agreed on the need to preserve Syria’s territorial integrity and state institutions.
Al-Jubeir also said that both Russia and Saudi Arabia believe in the principle of non-interference in other countries’ internal affairs and in the principle of territorial integrity.
For his part, Lavrov focused on the common ground, saying the two leaders had agreed on the importance of fighting terrorism, and finding peaceful solutions to conflicts in the Middle East.
Lavrov said the meeting between the Saudi monarch and Putin saw a “particular focus on Syria, Iraq, Libya and Yemen.”
Separately, the Russian-Saudi Investment Forum concluded on Thursday in Moscow with announcements of joint business and investment projects.
Ibrahim Al-Omar, governor of the Saudi Arabian General Investment Authority (SAGIA), said: “We’re working on improving the level of FDI (foreign direct investment) to the Kingdom by attracting more investments. We’re working to give the private sector a bigger share in the market.”
The energy minister said bilateral cooperation in the last two years has benefited the oil market by stabilizing prices.
“It has breathed back life into OPEC, which found itself… unable to swing its production as supply was persistently high in 2014 and global inventories were steadily rising ahead of demand,” Al-Falih added.
 


Huge expectations from Saudi crown prince’s Korea visit

Updated 10 min 8 sec ago
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Huge expectations from Saudi crown prince’s Korea visit

  • The export of South Korea’s APR-1400 nuclear reactor technology to Saudi Arabia is high on the agenda

SEOUL: Saudi Arabia’s Crown Prince Mohammed bin Salman is due to meet South Korean President Moon Jae-in on Wednesday to discuss wider economic ties between the two countries, according to the presidential office.
The crown prince’s visit to South Korea is the first by an heir to the throne of the world’s largest oil exporter since then-Crown Prince Abdullah’s tour in 1998. The crown prince will also attend the G20 Summit next week in Osaka, Japan.
The two-day visit is expected to deliver key agreements with South Korea in a variety of industrial fields, including cooperation on nuclear reactor and defense technologies.
“Saudi Arabia, a key ally of South Korea, is the biggest oil supplier to our government and the largest economic partner among the Middle Eastern countries,” presidential spokeswoman Koh Min-jung told reporters.
“Both leaders are expected to discuss detailed measures to expand bilateral cooperation beyond the traditional areas of construction and energy to the sectors of information and technology, nuclear energy, green cars, health, public service and exchange of human resources.”
The crown prince and his economic advisers are scheduled to have luncheon with South Korean business leaders after his summit with President Moon, she said.
Business leaders attending the luncheon will include Lee Jae-yong, vice chairman of Samsung Electronics; Chung Eui-sun, vice chairman of Hyundai Motor Group; Chey Tae-won, chairman of SK Group, and Koo Kwang-mo, chairman of LG Group.
A Samsung spokesman, who declined to be named, told Arab News that his company has a package of business proposals to present to Saudi Arabia.
“We’re not sure at the moment what business elements the Kingdom wants, but we have a variety of business packages that can meet the Saudi Vision 2030 requirements, ranging from engineering, procurement and construction to information and communications technology, and artificial intelligence,” the spokesman said.
Hyundai Motor Group was cautious about revealing potential business projects with Riyadh.
“We’ll see what’s happening. We have high expectations about potential business cooperation with Saudi Arabia,” a Hyundai Motor spokesman said, while asking not to be named.
The export of South Korea’s APR-1400 nuclear reactor technology to Saudi Arabia is high on the agenda.
Team Korea, led by the Korea Electric Power Corp., was shortlisted last year for a nuclear power plant construction project in Saudi Arabia, along with the US, China, France and Russia. The project by the King Abdullah City for Atomic and Renewable Energy is aimed at building two nuclear power plants by 2030.

HIGHLIGHTS

• Different South Korean companies are reportedly keen to invest in Saudi Arabia and become part of Vision 2030’s success.

• The Saudi leader is also expected to attend a ceremony celebrating the completion of Saudi-owned S-Oil’s residue upgrading facility.

• Crown Prince Mohammed bin Salman will also attend the G20 Summit next week in Osaka, Japan.

With Riyadh reportedly leaning toward the US bidder, Team Korea is considering forming a strategic consortium with the US side, according to government sources.
“The possibility of the Korea-US consortium for the Saudi project is a feasible option,” said Huh Min-ho, a researcher of Shinhan Invest Corp., referring to the US Nuclear Regulatory Commission’s approval of the technical design of South Korea’s APR-1400 reactors.
“For South Korea, joining hands with the US is a feasible option to win the Saudi nuclear reactor contract, though the total order amount would be reduced,” the analyst said. “Once the Saudi project is won, more orders are expected to come from other countries such as the UK, the Czech Republic and Poland.”
South Korea already has a nuclear power footprint in in the Middle East after its construction of the Barakah nuclear power plant in the UAE. The country recently won a five-year maintenance deal for the nuclear plant with Nawah Energy Co., the operator of the plant.
The Saudi crown prince is also interested in South Korea’s weapons development technology, according to defense sources, and is scheduled to visit the Agency for Defense Development, South Korea’s only weapons developing agency, during his stay.
“We heard the crown prince is interested in the transfer of weapons technology when his country imports foreign weapons systems,” a Defense Ministry official told Arab News.
The Saudi leader is also expected to attend a ceremony celebrating the completion of Saudi-owned S-Oil’s residue upgrading facility. S-Oil, which is wholly owned by state-run Saudi Aramco, is third-largest oil refiner in South Korea.