JEDDAH, 10 September 2003 — Russia expects Saudi investments worth $60 billion (SR225 billion) for new projects, Al-Hayat Arabic newspaper reported yesterday quoting a Russian diplomat in Riyadh.
The diplomat said the recent three-day visit of Crown Prince Abdullah, deputy premier and commander of the National Guard, to Moscow would help strengthen Saudi-Russian relations.
“The royal visit has paved the way for a strategic economic partnership” between the two oil giants, the Russian official told the Arabic daily.
Riyadh and Moscow, the world’s No. 1 and No. 2 oil producers and exporters, signed a landmark energy accord during the crown prince’s visit. The visit also saw the signing of three other agreements.
“The energy accord will make the two countries the center of international oil policy making, ensuring the interests of producers inside and outside the Organization of Petroleum Exporting Countries,” the diplomat said.
The official said the Kingdom had pledged $60 billion in joint investment projects to develop Russia’s economic sectors. The Russians expect that the Saudis will channel part of their huge deposits in America and other international markets to projects in Russia. Economic analysts have estimated Saudi funds abroad at between $600 billion and $800 billion.
The diplomat welcomed Saudi investments in Russia and reiterated Moscow was keen to transfer technology to the Kingdom. He also said he hoped Russian companies would be able to participate in the Kingdom’s gas projects.
During the crown prince’s historic visit, the Council of Saudi Chambers of Commerce and Industry (CSCCI) had signed a memorandum of understanding with its Russian counterpart to strengthen cooperation between the private sectors in the two countries.
In a press statement, Dr. Fahd Al-Sultan, secretary-general of CSCCI, said the Saudi and Russian private sectors would play a central role in boosting economic cooperation between the countries.
“Russia is a promising market for Saudi products,” the Saudi official told Al-Riyadh Arabic newspaper. Al-Sultan said the crown prince’s visit to Moscow was of “strategic importance.”
He also said the new partnership between Saudi Arabia and Russia would increase commercial exchange between the two countries. Bilateral trade did not exceed $130 million annually over the past decade.
“We in the Saudi private sector look forward to having Russia as strategic and important partner,” he said.
Al-Sultan said Saudi businessmen, some of whom accompanied the crown prince, had negotiated with their Russian counterparts to promote trade exchange and establish joint ventures.
The first Saudi industrial exhibition opened by the crown prince in Moscow attracted a large number of Russians, he said.
