Top on the agenda of Libyan leader Muammar Gaddafi's first official visit to Moscow in the last 23 years is an array of agreements, including those in energy and arms sales sectors, which will help boost the bilateral relations and balance Libya's ties with the West.

As oil-and gas-rich countries, Russia and Libya share broad prospect for bilateral cooperation in energy sector.

Russian energy giants Gazprom, Tatneft, Tatneftegeofizika, LUKOIL and Stroitransgaz are operating in Libya's oil and gas sector. Their business vary from geological surveys, offshore exploration and development to oil refining and pipeline building.

Gazprom, the Russian oil monopoly, is also discussing with Libya the construction of an oil pipeline stretching through the North Africa country to Europe that will strengthen Russia's existing control over energy supply to its major buyer.

"In our opinion, bilateral hydrocarbon cooperation is particularly topical at present, especially as we think alike about gas and oil policies," Gaddafi was quoted by Interfax as saying during talks with Medvedev.

Kremlin officials said ahead of the visit that a principal agreement on a large package of arms contracts worth over 2 billion U.S. dollars is to be reached during Gaddafi's stay in Moscow, which is a traditional supplier of once the largest buyer of Soviet arms.

In fact, economic and military ties between the two countries warmed up since Medvedev's predecessor Vladimir Putin's visit to Libya in April, which was the first bilateral summit in 20 years and reached bunches of economic and military agreements.

The close military ties will balance Libya's relations with the West which is recovering but still facing challenges, and conforms with Russia's strive to retain a strong role in Africa and the Middle East, analysts say.

The two countries will also encourage cooperation between the private sectors in a bid to promote trade and economic ties.

An agreement reached on Saturday says that Russia and Libya will establish a free economic zone, a joint bank and an investment fund. The two countries will also launch regular air service between Moscow and Tripoli so as to boost business.

"The door is open to the promotion of interaction in the civilian sector ... Russian companies have already begun actions in this domain of Libyan economy," Gaddafi told Medvedev.