According to him, the Russian government and the Saudi Arabian government signed an agreement on gas and oil cooperation, which envisages bilateral cooperation on key issues in this sphere. In particular, Russia and Saudi Arabia will coordinate the supplies of oil products to the external market, Rossiya (Russia) television reports.

In addition, the agreement envisages cooperation of Russian and Saudi companies in implementing joint projects, both in Russia and Saudi Arabia, Mr. Yusufov said. The document also speaks about Saudi investments in the Russian economy.

According to the agreement, Russia and Saudi Arabia agreed to set up a joint group to develop bilateral cooperation in the oil and gas sector. Mr. Yusufov noted that such a working group had already existed, and it would be granted a new status after the signing of the agreement.

In addition, the Russian Fuel and Energy Minister said that a number of important documents would be signed shortly, including an agreement on avoiding double taxation and mutual investment protection.

Mr. Yusufov stressed that the Saudi Crown Prince’s gas initiative was one of the top issues on the agenda. According to the Fuel and Energy Minister, this initiative proposed joint development of gas fields, geological surveys, use of gas for desalinating sea water, the construction of gas pipelines, gas-powered power stations and other oil and chemical facilities. The projects are estimated at $20-25bn, according to Mr. Yusufov.

He said Saudi Arabia’s tender committees had already started accepting applications, and expressed hope that “Russian companies will take a worthy place in the implementation of these projects”. During the visit of Saudi Crown Prince Abdullah to Russia, a number of contracts would be signed between Russian and Saudi companies, Mr. Yusufov added.