RUSSIA - Sept. 2 - Saudi CP Abdullah In Moscow.

The Saudi delegation headed by Crown Prince Abdullah Bin Abdulaziz Al Saud arrives in Moscow for a 3-day visit. (Abdullah's visit is the first by a Saudi leader in more than 70 years. Although the Soviet Union was the first nation to recognise Saudi Arabia in 1926, the two countries had no diplomatic relations between 1938 and 1990). Abdullah meets Putin in the Kremlin. They reach a 5-year intergovernmental agreement, which "intends to strengthen bilateral co-operation aimed at the stabilisation of world energy markets". Abdullah told Putin: "This day will go down in history as it opens a new era in Saudi-Russian relations". Although short on specifics, the agreement does call for the two nations, who have competed fiercely with each other in recent years for oil market share, to make it easier for each other's companies to form joint ventures. Moscow and Riyadh also plan to work on "improving dialog between countries that produce carbon resources and countries that consume carbon resources", the agreement said. The goal is "the stabilisation of world markets and the flourishing of the world economy". The agreement was signed just as the Energy Ministry released data showing that Russian crude production hit 8.6m b/d in August, another post-Soviet record, with exports via state-owned pipeline monopoly Transneft rising 100,000 b/d to 3.58m b/d. Putin trumpeted Saudi Arabia as "one of the most important Muslim nations". He told Abdullah in televised remarks: "During a considerable period of contemporary history we have always seen the Arab World, Muslim World, as one of our closest partners and allies. We are sure, your highness, that the visit by you and your colleagues will serve as a good new, powerful boost in the development of bilateral relations". Abdullah replied that the Saudi people and King Fahd have great respect for the Russian people and Putin himself. On Sept. 5, Abdullah called for a peaceful solution to the Chechnya problem but described the crisis as an internal matter for Russia. He said: "We look forward to a settlement of the protracted Chechen issue through peaceful and constitutional means within the framework of the Russian Federation".