Saudi Arabia and Russia are expanding their economic cooperation. The Saudis have signed a statement of intent, according to which they will invest ten billion dollars in Russia over the next five years, the newspaper reported.
The money will be provided by Saudi Arabia's Public Investment Fund (PIF) and will be distributed by the Russian Direct Investment Fund (RDIF) to corresponding projects.
The Saudi Prince Mohammed bin Salman bin Abdulaziz al-Saud proposed the deal during a personal meeting with Russian President Vladimir Putin at the Economic Forum in St. Petersburg in June, RDIF’s head Kirill Dmitriev said.
This is the biggest commitment of a foreign investor since the establishment of the Fund, he added.
The deal has surprised international experts as Saudi Arabia and Russia are direct competitors in the highly competitive oil market.
Moreover, Saudi Arabia is a close ally of the United States. Taking into account the recently extended sanctions against Russia, the US is likely to watch the deal with suspicion, DWN wrote.