Saudis to invest $10 billion in Russian Federation despite Western sanctions

Saudi Arabia plans to invest up to $10 billion in Russian Federation over the next five years in the latest bid by the kingdom to endear itself to a traditional energy rival.

Saudi Arabia’s Public Investment Fund (PIF) signed a deal on Monday with the Russian Direct Investment Fund (RDIF) to invest $10bn in the country, in a possible sign of rapprochement.

The prince visited St. Petersburg with a large delegation during the economic forum and took part in President Vladimir Putin’s meeting with global investment fund heads.

Seven projects have already received preliminary approval, with a total of 10 likely to be green-lighted by the end of the year, Dmitriyev said.

PIF expressed interest in investing in agriculture, medicine, retail, logistics and real estate, says Dmitriev.

Prior to the deal with Saudi Arabia, its largest deal was a $7 billion agreement with the sovereign wealth fund of the United Arab Emirates.

“With the IDFC in India, we discussed projects in hydrogeneration where Russian Federation has a lot of expertise”, he said.

Kirill Dmitriev, CEO of RDIF, said Deputy Crown Prince Mohammed bin Salman, second deputy premier and defense minister, had played an enormous role of support in sealing the deal.

The RDIF also said it signed an agreement with another Saudi Arabian sovereign-wealth fund, the Saudi Arabian General Investment Authority, under which the two sides would seek mutual investment opportunities in Saudi Arabia and other Middle East countries. Since then, the Russian fund’s new partnerships have been dominated by Asia and the Middle East as Russia’s political stand-off with the west has made USA and European funds cautious over teaming up with a state-backed entity.