Saudi Arabia And Russia Agreement

16 Dec

On the first day of the negotiations, a set of bilateral documents[51] was signed for oil, military and space exploration. [52] [53] Arms sales worth $3 billion, expected to be completed by the end of October 2017, in accordance with Saudi Arabia`s attempt to locate the manufacture of weapons, saw the possibility of a transfer of technology for the local production of Russian Kornet-EM anti-tank missiles, TOS-1A rocket launchers and AGS-30 automatic grenade launchers, the latest version of the Kalashnikov assault rifle and long-range S-400 missile system. [54] [55] [56] [57] Saudi Arabia has agreed to invest $1 billion in Russian energy projects and Russian gas processing and petrochemical company Sibur has committed to build a facility in Saudi Arabia in a separate $1.1 billion contract. [58] Regarding the extension of the oil production reduction contract until the end of 2018, which had been proposed by Vladimir Putin as a possibility on the eve of talks with the king,[59] the Kremlin stressed after the discussions that Vladimir Putin had not proposed the extension, but had allowed it as a possibility in market conditions. [60] [61] The Russian media and experts made much of the Saudi Foreign Minister`s comments on the prospects for lifting Russian sanctions, but also warned that genuine cooperation had not yet been established between the countries. [62] Diplomatic relations did not resume until 1992, after the dissolution of the Soviet Union and the founding of the Russian Federation. [4] [5] Despite the lack of relations, some 20 Soviet Muslims were allowed to do the Hajj each year between 1946 and 1990, when liberalization allowed thousands of Soviet Muslims to participate. [6] Over the past 25 years, Russian-Saudi relations have never evolved beyond symbolic visits, although Saudi King Salman visited Moscow in 2017 with a delegation of 1,500 people; The agreement between Moscow and Riyadh, however, has faded in relation to the Saudi arms treaties with the United States. [4] Under the agreement, nations will have access to the credit lines of the European Stability Mechanism, also known as the EU bailout fund, provided that spending is limited to direct responses to the pandemic. The agreement will also increase the lending capacity of the European Investment Bank and a new unemployment insurance programme. On March 8, 2020, Saudi Arabia launched a price war with Russia, which facilitated a quarterly drop of 65% in the price of oil. [1] In the first weeks of March, U.S. oil prices fell by 34%, crude oil by 26% and Brent oil by 24%.

[2] [3] The price war was triggered by a breakdown in the dialogue between the Organization of the Petroleum Exporting Countries (OPEC) and Russia over planned oil production cuts in the midst of the COVID 19 pandemic. [1] Russia left the agreement, which led to the downfall of the OPEC alliance. Oil prices had already fallen by 30% since the beginning of the year due to a drop in demand. [4] The fight for awards is one of the main causes and impact of the global stock market crash that followed. [5] Later, on 3 April, the Saudi foreign and energy ministers issued statements criticizing Putin and accusing Russia of not participating in the OPEC agreement. [38] “Any agreement on the extension of the cuts is conditional on countries that have not fully complied with their cuts in May, which will be hit with their cuts in the coming months, to compensate for their overproduction,” the source said. EU heads of state and government agree on an economic package. The heads of state and government of the European Union have reached an emergency agreement to counter the most serious economic consequences of the coronavirus pandemic.