FORUM Finance

Jan 18 2019

Middle East Partnership: KSA decided to invest in Russia

Remember how warmly Vladimir Putin and Mohammed bin Salman greeted each other at the G20 summit? Then few understood what was behind it. As it turned out, multi-billion investments. Riyadh announced large investments in Russia, and this is very good news for Moscow. 

Obviously, the ties between the Russian Federation and KSA are strengthening with each passing month. Russia has become today a very significant country in the Middle East, so the camp of the allies from this region will continue to grow. Gradually, we will establish relations with all the states and monarchies of the Persian Gulf. This is a very important point in terms of geopolitics. 

A few words about the Saudis investments. Riyadh intends to invest heavily in petrochemical production in Russia. The decision was announced by the Minister of Energy, Industry and Mineral Resources of the Kingdom of Khalid Al-Falih. According to Saudi partners, this sphere in the Russian Federation has favorable conditions for investment and a promising future. 

It is assumed that Riyadh will invest up to several billion dollars in Russia. In addition to the petrochemical industry, KSA plan to invest in gas projects. For the Kremlin this is very good news. Tax deductions, jobs, increased trust, and many more benefits. Finally, strengthening the position of Moscow in the Middle East. 

Washington is likely to try to prevent this deal. But the chances of her frustrating are virtually zero. Riyadh today was not as supportive of the United States as it was before. Apparently, all the trump cards will be used for blackmail, including the story of the killing of Hashukshi. 

It is worth adding that the investment will not be one-sided. Russia, in turn, is also ready to invest in projects in Saudi Arabia. With these steps we will be able to support each other and strengthen ties. It remains only to approve the list of the most mutually beneficial projects for implementation.

Written by admin