Saudi Arabia considers buying Russia's S-400 air defence system

Saudi Arabia says it has signed a memorandum of understanding on the purchase of S-400 air defence systems from Russia's state arms exporter during Saudi King Salman's landmark trip to Moscow on Thursday.

Russia will help the kingdom develop its own military industries, Reuters said, quoting a statement from state-owned Saudi Arabian Military Industries (SAMI).

A memorandum of understanding is generally a non-binding agreement and precedes serious negotiations on such deals. 

Russian President Vladimir Putin hosted Saudi Arabia's King Salman for talks at the Kremlin, cementing a relationship that is crucial for determining world oil prices and could be pivotal for resolving conflicts in the Middle East.

King Salman, the first sitting Saudi monarch to visit Russia, led a delegation to Moscow that agreed joint investment deals worth several billion dollars, providing much-needed investment for a Russian economy battered by low oil prices and Western sanctions.

Russia and Saudi Arabia will continue to work on stabilising world oil markets, King Salman told Putin on Thursday.

"This is the first visit by a Saudi Arabian monarch in the history of our relations and that in itself is a landmark event," Putin said as he welcomed King Salman to Moscow in an ornate gilded Kremlin hall.

"We aim to strengthen our relations in the interests of peace and security, in the interests of developing the world economy," the Saudi king responded.

A slew of investment agreements are due to be signed during King Salman's four-day trip. 

While they agree with each other when it comes to oil, Moscow and Riyadh are on opposite sides of the war in Syria — with Russia supporting Syrian regime of Bashar al Assad and Saudi Arabia backing the opposition.

TRT World speaks to political commentator Salman al Ansari in Riyadh.

OPEC deal extension

King Salman and Putin are expected to discuss major defence and energy contracts, as well as extending oil production cuts ahead of the OPEC oil cartel meeting in November.

Saudi Arabia and Russia are heavily dependent on oil exports and the global plunge of the price of crude that began in 2014 lashed both of their economies.

Members of OPEC, of which Saudi Arabia is the biggest producer, have joined with non-member Russia and other countries in cutting crude output in a pact that has helped prop up prices.

An extension of the OPEC deal was possible and could last "at least to the end of 2018", said Putin on Wednesday.

The current agreement runs until March 2018.

"Positive cooperation"

Russia and Saudi Arabia will sign joint investment agreements worth more than $3 billion, Russian Energy Minister Alexander Novak was quoted as saying on Wednesday.

The deals include a $1.1 billion agreement for Russian petrochemical firm Sibur to build a plant in Saudi Arabia, the energy ministry cited Novak as saying in an interview with the Financial Times newspaper.

Syria

The Saudi King gave a positive assessment of the Astana process on settling the Syria conflict, Russian Foreign Minister Sergei Lavrov said, adding that Russia supports Saudi efforts to unite Syria's opposition so they can take part in the peace talks. 

Saudi Foreign Minister Adel al Jubeir also said that the two countries are working to unite Syrian opposition and that they have agreed on the need to preserve Syria's territorial integrity and state institutions.

In opening remarks broadcast on Russian television, the Saudi monarch said a political solution to the conflict in Syria must be found that keeps that country in one piece.

Fighting terrorism

The two leaders exchanged views on the situation in the Middle East and North Africa and agreed on the need to fight terrorism, Lavrov said.

They underlined the need for a peaceful solution to the conflicts in the region, he told a joint news briefing with his Saudi counterpart Jubeir after the two leaders met.