Saudi Arabia invest 10 billion USD in Russia

The State Investment Fund of Saudi Arabia invest 10 billion USD in Russia, sending a strong signal of convergence of views between Moscow and Riyadh. The fund signed a contract with the Russian Direct Investment Fund for the largest amount of foreign direct investment in the history of Russia, Moscow announced late Monday. The deal, which stems from the Memorandum of Understanding signed between the two countries during the economic forum in St Petersburg last month, comes amid attempts by Riyadh and Moscow to restore relations after the Russian government’s support for the regime of Bashar al-Assad in Syria.

“The first seven projects received preliminary approval and we expect to achieve ten deals before year end”, said Kirill Dmitriev, Chief Executive Officer of the Russian Direct Investment Fund. Dmitriev said that the Saudi defense minister Mohammed bin Salman Al Saud has played a “huge” role in the deal. The Prince visited St Petersburg with a large delegation during the economic forum and met with President Vladimir Putin and with the world leaders of investment funds.

After Salman King ascended the throne in Saudi Arabia in January, his government and that Putin is trying to overcome their differences on possible ways out of the four years of civil war in Syria. While Riyadh supports “moderate” Islamists in Syria, Moscow remains firmly against any link to Islamist forces as a means to stop the rapid expansion of the Islamic state.

By the Russian Direct Investment Fund indicated that the funds will be invested in infrastructure projects, trade, logistics and agriculture for five years. Moreover Dmitriev urged European investors to look at the deal Russia with Saudi Arabia as a signal to return. “Europe must continue to work with Russia”, he said.