Russia, Saudi Arabia in strategic tie-up

Apart from geopolitics, Riyadh’s aim during Salman’s Moscow trip will be to seal trade and investment deals

audi King Salman Bin Abdul Aziz made a historic first visit to Russia by a monarch of the Gulf kingdom on Wednesday, where the Saudi leader was to sign a string of investment deals.

The Saudi courtship of Russia reflects a convergence of interests between the world’s two largest oil exporters as the output pact between the Organisation of Petroleum Exporting Countries (Opec) and non-Opec producers has spurred a recovery in crude prices.

It’s also a recognition by Riyadh of the changing political balance in the Middle East, after Russian President Vladimir Putin successfully countered indecisive efforts by the United States to topple Syrian President Bashar Al Assad. In an interview with the Saudiowned Al Sharq Al Awsat newspaper, Russian Foreign Minister Sergei Lavrov boasted that the visit would bring bilateral cooperation to a totally new level.

There appears to be a new level of trust between the two countries, which have had a long history of being on opposing sides of conflicts — Riyadh has been a loyal ally of Washington for decades.

However, American disengagement from the region, which started under the administration of former US president Barack Obama, has seen Moscow quickly fill the vacuum. Its decisive action in Syria, which effectively prevented the rebels from toppling Al Assad, is proof that Russia has staked a lot in making sure it will have a long-term presence and influence in the Middle East.

Russia’s prepared proposals to sell $3 billion (Dh11 billion) of arms, that may include the S-400 missile-defence system for discussion during the king’s visit, could trouble the US, which has traditionally been Riyadh’s main weapons supplier. The visit could be Saudi Arabia’s way to signal to the US that it is unhappy over its outreach to Iran, signing a nuclear accord that lifts sanctions on their rival. Riyadh is also unhappy that the US did not do more in Syria to get rid of Al Assad, Iran’s chief ally in the region.

But aside from geopolitics, Riyadh’s main agenda will be dominated by trade and investment deals. Saudi Arabia wants to deepen energy ties with Russia by striking major deals to acquire oil and gas assets. Russian Energy Minister Alexander Novak said Saudi companies are in talks on possible participation in an Arctic LNG project led by Novatek PJSC, and Saudi Arabia is to invest $150 million into Eurasia Drilling Co, Russia’s largest oil drilling contractor, the Financial Times reported.