Saudi Arabia, Russia fund ‘to invest over $2bn this year’

Saudi Arabia, Russia fund ‘to invest over $2bn this year’
Kirill Dmitriev CEO of Russian Direct Investment Fund attends the Future Investment Initiative last year. (AFP/File photo)
Updated 07 June 2019

Saudi Arabia, Russia fund ‘to invest over $2bn this year’

Saudi Arabia, Russia fund ‘to invest over $2bn this year’
  • Kirill Dmitriev, head of the Russian Direct Investment Fund, said it expects to conclude a deal with Saudi Aramco to acquire a stake in Novomet
  • The RDIF has also offered 30 investment projects in the Russian petrochemical sector to Tadawul-listed Saudi Basic Industries Corp

LONDON: The head of Russia’s sovereign wealth fund says it plans more than $2 billion of investments with Saudi Arabia this year.

Kirill Dmitriev, head of the Russian Direct Investment Fund (RDIF), also said it expects to conclude a deal with Saudi Aramco to acquire a stake in Novomet, the oil equipment manufacturer.

“Overall, RDIF and Saudi partners are looking at 25 new projects and are planning to invest over $2 billion this year, and expect to conclude the deal for Novomet,” he told the Argaam news outlet.

The RDIF has also offered 30 investment projects in the Russian petrochemical sector to Tadawul-listed Saudi Basic Industries Corp. (SABIC). 

“Three projects have been selected for review by SABIC, and one will be reviewed by their investment committee in the coming weeks,” Dmitriev stated.

The fund is also looking into a project with Russia’s SIBUR to build a rubber plant in Saudi Arabia, he added.

Dmitriev welcomed investment from the Kingdom in Russia’s development, like the 2015 agreement with the RDIF to invest $10 billion in various projects.

“We are inviting Saudi and international investors to invest in Russia’s national projects, as part of an initiative launched by President Vladimir Putin aimed at modernizing the Russian economy, similar to Crown Prince Mohammed bin Salman’s Vision 2030 program.”

Dmitriev was speaking ahead of the annual International Economic Forum in St. Petersburg, Russia, which starts on Thursday. 

A significant delegation from Saudi Arabia, led by Energy Minister Khalid Al-Falih, is expected at the event.