Russia and Saudi Arabia Agreed on Enhancing Power Industry Cooperation

June 15, 2018

Russia and Saudi Arabia Agreed on Enhancing Power Industry Cooperation

The Russian Federation and Saudi Arabia agreed to take the next step toward expanding power industry cooperation, especially in the oil and gas sector. This was declared in a joint statement of Alexander Novak, Minister of Energy of Russia, and Khalid al-Falih, Minister of Energy, Industry and Mineral Resources of Saudi Arabia, published on the website of the Ministry of Energy on 14 June 2018.

The parties shall follow the principles of striving for a balanced market, which is supported by a reliable and sufficient supply; common responsibility of all parties for the stability of the oil market; oil and gas supply as a key element of the global energy balance in shaping the world regulatory agenda; investment in the oil and gas sector to meet the growing demand for oil and compensate for the natural decline of production.

One of the principles also mentioned is the growth of investments in the energy sector to improve the energy efficiency and stability of the world economy, alongside with the acceleration of technological progress. In addition, Russia and Saudi Arabia have agreed to work together on a comprehensive bilateral agreement reflecting the principles mentioned.

“The parties also agreed to work together with all signatories of the Declaration on Cooperation to create a long-term structure for cooperation, as well as to invite other major oil producers to cooperate,” the statement said.

Mr. Khalid al-Falih was a guest of the first International Forum ‘Russian Energy Week’, which took place in Moscow and St. Petersburg in 2017 and participated in the plenary session called The Russian Fuel and Energy Industry: National Interests and Global Trends.

Also on 14 June 2018, the Minister of Energy Alexander Novak participated in the meeting of the President of the Russian Federation Vladimir Putin with Crown Prince and Defence Minister of Saudi Arabia Mohammad bin Salman Al Saud. During the meeting it was noted that over the past several years the countries have come far in terms of developing bilateral relations in many fields – political, economic, industrial, oil-related. In particular, the point was that the stabilisation achieved in oil prices helped to stabilise the entire global economy.

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