Saudi Arabia’s Public Investment Fund and Russian Direct Investment Fund together are going to invest $10 billion into Russian projects.
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Saudi Arabia agreed to invest $10 billion in Russian Federation in the next four to five years as Moscow increasingly looks to the Mideast and Asia for partnerships amid Western sanctions over the crisis in Ukraine.
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. “The first seven projects have received preliminary approval, and we expect to close 10 deals before the end of the year”, said Kirill Dmitriev, RDIF chief executive. They may attract partners from China, South Korea and United Arab Emirates.
Dmitriev pointed out that Mohammed bin Salman al-Saud, Saudi deputy crown prince and defence minister, had played an “immense” role, supporting the deal until it was finally sealed.
A report by the Wall Street Journal, citing Dmitriev, said that a majority of the funds from PIF will be spent on Russia’s agricultural projects, as well as on medicine, logistics, and the country’s retail and real estate sectors.
Facing a political standoff with the West, Moscow has been turning eastward, saying it would seek Asian investors to reduce reliance on Europe and the USA In early May, Russia signed economic deals with China via the RDIF worth up to $25 billion, with Chinese banks investing in Russian companies. “Sometimes the wind can help bring the ship to its destination”, he said.
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The RDIF also disclosed that it signed an agreement with Saudi Arabian General Investment Authority (SAGIA), to undertake projects in Saudi Arabia and other Middle East countries.
