Strategic Accords Likely During Putin's Visit Today - KSA 

(MENAFN - Arab News) RIYADH, 11 February 2007 — Russia and Saudi Arabia are expected to sign three major agreements and two memorandums of understanding (MOUs) as Russian President Vladimir Putin arrives in the Saudi capital today on his first visit to the Kingdom.

Russian Ambassador Victor Koudriavtsev said yesterday that Putin, who will be accompanied by government ministers and a trade delegation, is scheduled to speak with Saudi leaders regarding issues facing the region, including Iraq, Lebanon and the Palestinian-Israeli conflict.

Talks will also revolve around bilateral trade relations. "We are ready to pursue talks held a year ago between Saudi and Russian businessmen on all fronts," the ambassador said.

According to the embassy, the first agreement to be signed today is a convention that would eliminate double taxation on income and capital. Russia's Deputy Minister of Finance Sergey Shatalov is expected to sign the agreement with Minister of Finance Ibrahim Al-Assaf from the Saudi side.

The second agreement, to be signed by Russian Minister of Transport Igor Levitin, will involve air links between the two countries.

The MOUs will address three topics: cultural exchanges, development funds and cooperation between the two countries' state news agencies.

Minister of Culture and Information Iyad Madani will sign the MOU on cooperation between the Federal Agency of Culture and Cinematography in Russia with the agency's chief Mikhail Shvydkoi.

Several protocols are expected to be generated by the agreement. As of next year, a Saudi cultural week will be marked in Russia and Moscow will participate in the annual Janadriya Cultural Festival in Riyadh, the ambassador said.

The large trade delegation, which consists of nearly 60 business executives, is expected to explore a wide range of investment opportunities, mainly in oil exploration and railways.

"Lukoil (Russia's largest privately held oil producer) and Saudi Aramco are seeking areas of cooperation to explore oil wells in the south of the Kingdom," said Koudriavtsev.

In January 2004, Lukoil won a tender to develop a Block A natural gas field in the Empty Quarter. Lukoil signed a 40-year contract with the Saudi government to explore and develop the natural gas deposit.

Russia's energy giant Gazprom is also showing interest in energy projects in the country. Saudi Arabia is estimated to be tendering $20 to $25 billion worth of investment in the natural gas sector.

Russian executives are also expected to bid on Saudi Arabia's new railway projects. Saudi and Russian businessmen are expected to hold a joint meeting tomorrow to discuss areas of possible joint ventures between the two countries. Putin is expected to attend the meeting.

Putin will also visit Jordan and Qatar during his three-day regional tour.