MOSCOW—Saudi Arabia has signed a commitment to invest up to $10
billion in Russia, the Russian Direct Investment Fund said
Monday.
Russia's latest pact with its closest oil-producing rival marks
Moscow's efforts to replace Western funding, which has been hit by
sanctions, just a few days before a summit of five major emerging
economies, known by the acronym of Brics, to be held in Russia's
town of Ufa.
The majority of the $10 billion from Saudi Arabia's
sovereign-wealth fund, Public Investment Fund, will be spent on
Russia's agricultural projects, as well as on medicine, logistics,
and the country's retail and real estate sectors, RDIF chief Kirill
Dmitriev told The Wall Street Journal.
The agreement was reached after a "great" contribution from
Mohammad bin Salman Al Saud, Deputy Crown Prince of Saudi Arabia,
who met Russia's President Vladimir Putin during an annual economic
forum in Saint Petersburg in June, the RDIF said.
"The key investments will take place on Russian territory, but
we will also invest in Saudi Arabia, which we consider a very
promising market," Mr. Dmitriev said.
The RDIF also said it signed an agreement with another Saudi
Arabian sovereign-wealth fund, the Saudi Arabian General Investment
Authority, under which the two sides would seek mutual investment
opportunities in Saudi Arabia and other Middle East countries.
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 U.S. In early May, Russia signed
economic deals with China via the RDIF worth up to $25 billion,
with Chinese banks investing in Russian companies. However, so far,
there has been little evidence that China's money has started
flowing into Russia under this pact.
Write to Andrey Ostroukh at andrey.ostroukh@wsj.com
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