King Salman's visit to Russian Federation underlines Saudi pragmatism

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The visit of Saudi Arabia's King Salman to Russian Federation this week shows the high degree of mutual trust between Russian Federation and Saudi Arabia, Falih said.

King Salman of Saudi Arabia will arrive in Russian Federation this week to conduct the first official visit to the country by a Saudi king, a senior Kremlin aide said Monday.

Under the agreements, Saudi Arabia is set to buy S-400 air defence systems, Kornet anti-tank guided missile systems and multiple rocket launchers.

It can track and engage up to 300 targets at the same time and has an altitude ceiling of 27 kilometers.

Russian President Vladimir Putin said on Wednesday that a military strike against North Korea created to destroy its nuclear and missile program might not succeed because Pyongyang could have facilities that nobody knows about.

Russian state nuclear company Rosatom has sent proposals to Saudi Arabia to build a nuclear power plant in the country, the company's head Alexei Likhachev said, according to TASS.

Russia, which relies on energy for more than one-third of its budget revenue, reached a historic accord in 2016 with Opec to cut production, hoping to eliminate a global oversupply.

OPEC ministers attending the Moscow event said they were considering extending the deal or making a deeper cut.

Food security is a major concern for Saudi Arabia, which stopped local production of livestock feed and wheat due to water scarcity. The deal has been extended to March 1 2018 and is aimed at reducing the global oil surplus that had led to crude oil falling to a 13-year low of under $30 a barrel last year.

Beyond short-term market drivers, analysts at Barclays bank said oil demand could be seriously dented by improving fuel-efficiency and the rise of electric vehicles (EV).

Analysts see Salman's trip to Moscow, which follows other visits by Gulf royals, as the clearest sign yet that Russia's high-risk gamble in Syria has paid off, the report said.

Both Falih and Nasser are part of an official Saudi visit to Moscow.

While the U.S. has remained Saudi Arabia's top weapons supplier and its most critical Western ally, Thursday's deals highlighted Riyadh's intention to expand ties with Russian Federation.

Saudi Arabia's General Investment Authority granted licenses to four Russian companies to work fully in the construction sector.

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