Moscow Welcomes Saudi King, Describes Visit As 'Most Important Event'

Russian President Vladimir Putin has hosted Saudi King Salman for talks at the Kremlin, in the first official visit to Russia by a reigning Saudi monarch.

Before the signing of the documents, King Salman had talks with Russian President Vladimir Putin.

The current agreement runs until March 2018.

Anna Borshchevskaya, a fellow at The Washington Institute for Near East Policy, says Russian Federation has no capacity to replace the United States as Saudi Arabia's key ally. The two countries have expressed interest in various business deals despite differences over Syria.

Moreover, according to the Kommersant newspaper, Russian Federation will propose selling Saudi Arabia its latest anti-air S-400 Triumf missiles, a deal which could go up to $3 billion.

The report came during a visit by Saudi King Salman to Moscow.

King Salman is expected to ask Russia's support and commitment to ensure that the production cuts deal continues, following Saudi Arabia's cut of its output to around 10 million barrels per day to help control a glut in world oil supplies.

Salman also told Putin he hoped to see "a Palestinian state with East Jerusalem as its capital" established in the future, as a solution to the Israeli-Palestinian conflict.

The countries also moved to deepen ties in the energy sector, with Russian firm Sibur agreeing to joint oil-refining projects with Saudi Aramco.

Russia's Rosoboronexport and the Saudi military consortium signed a memorandum on the manufacturing rights of Russian military equipment in Saudi Arabia.

Despite this, other factors weighed on oil prices, including the return to production of Libya's Sharara oilfield after an armed brigade forced a two-day shutdown.

Russian Economy Minister Maxim Oreshkin said on October 3 investors were interested in a nuclear energy plant Saudi Arabia wants to build and Saudis would be offered investment opportunities including in shipping company Sovcomflot.

A slew of investment agreements would be signed during King Salman's trip and plans for a $1-billion fund to invest in energy projects are likely to be finalised then, as part of efforts by two of the world's biggest oil producers to expand cooperation.

"What we did with OPEC, I believe, is beneficial for all the global economy", Putin said during an energy forum in Moscow.