JEDDAH, 2 September 2003 — Crown Prince Abdullah, deputy premier and commander of the National Guard, begins a historic visit to Russia today.
The royal visit will culminate with the signing of a landmark energy accord between the two oil giants.
Official Russian sources have welcomed the visit of the crown prince, the highest-ranking Saudi ever to visit Moscow. They said Prince Abdullah and President Vladimir Putin will sign agreements for cooperation in the gas and oil sectors and also in the economic, commercial and scientific fields as well as in the areas of sports and youth welfare.
The Russian Itar-Tass news agency described the crown prince’s visit as “a historic event” in Moscow’s relations with Saudi Arabia. The agency noted the “positive cooperation” between the two countries in the fight against terrorism.
During his talks with Putin, the Saudi crown prince is expected to seek active Russian support for major Arab issues, including Palestine and Iraq. The Saudis will also invite Moscow to join the Organization of Petroleum Exporting Countries (OPEC) if only as an observer. Saudi Arabia is a leading member of the organization.
Given the present situation, observers say that the two countries will be better off cooperating instead of competing. Cooperation will help to improve their oil-sensitive economies and will increase their influence in the international oil market as well.
Saudi Arabia’s oil reserves are estimated at more than 261 billion barrels, 25 percent of the world’s total oil reserves. Russia is now the world’s second largest oil exporter, immediately after Saudi Arabia. Russia’s net oil export is projected to grow to 5.4 million barrels per day.
Economic analysts have said that the expected energy accord between Riyadh and Moscow would pave the way for mutual investments, not only in the gas and oil sectors but also in other vital economic areas.
“The cooperation between the world’s largest oil producers will definitely contribute to stabilizing the international oil market,” Russian Deputy Premier Victor Khristenko told Al-Jazirah Arabic daily.
“We also look forward to strengthening cooperation in the commercial, economic and investment areas,” Khristenko said.
“There are also good prospects for cooperation in transportation and geological surveys and in water projects,” he added.
Saudi Ambassador to Moscow Muhammad Hassan Abdul Wali highlighted the significance of the royal visit. He dismissed attempts to link the war on terrorism with a clash of civilizations.
Trade between the Kingdom and Russia averaged SR478.5 million over the past 10 years. Bilateral trade reached a peak in 1995 at SR835 million. The royal visit is also likely to promote economic cooperation between Russia and the Arab world as a whole. Today the volume of trade between them is significantly lower than it was during the Soviet era. Last year, the volume of trade between Russia and the Arab countries was estimated at $5.5 billion, including $2 billion with Iraq.
Officials at Rosvooruzheniye, Russia’s largest arms exporter, said that it was too early to predict whether Prince Abdullah’s visit would lead to military cooperation between the two countries. However, they did not rule out prospects that the Moscow talks would pave the way for such cooperation in future.
The crown prince’s visit is well-timed as it comes before Putin’s summit meeting with US President George W. Bush and the Russian president’s address to the United Nations General Assembly.
