Russian Direct Investment Fund important bridge between Russia and Saudi Arabia - minister

Russian Direct Investment Fund important bridge between Russia and Saudi Arabia - minister

Russian Federation and Saudi Arabia plan to ink an agreement in the LNG sector during Wednesday talks in Riyadh, and also aim to finalize three major energy projects worth more than $2 billion in joint investments within the next three months, as the two countries aim to accelerate work to build a strong bilateral relationship, the head of Russia's Fund of Direct Investments, Kirill Dmitriyev, said Wednesday.

Russian Federation also has significant investments in Saudi Arabia's petrochemicals industry, he said.

Dmitriev told Reuters last month that there was great interest in the Aramco IPO from Russian pension funds and Chinese partners.

Dmitriev also said a global deal between the Organization of the Petroleum Exporting Countries and some non-OPEC producers to cut crude supply was stabilising the oil market.

It expects United States production will soon overtake that of Saudi Arabia and by the end of this year, could also exceed Russian output to become the global leader.

Among other partnerships discussed between the two sides, include an engagement on climate policy, with energy ministers from both sides agreeing to meet in Jeddah in April to discuss their energy co-operation further, he added.

The move is aimed at strengthening energy ties between the two major oil producers.

Saudi investments in Russian projects has exceeded $2 billion, according to the head of the Russian Direct Investment Fund, Kirill Dmitriev.

"I think today you will also see a big announcement between Saudi Aramco and a major LNG project in Russian Federation, but let's wait for the announcement", he said, adding that Russian Federation enjoyed seeing Saudi Arabia's energy minister Khalid al-Falih visiting the Arctic Yamal LNG project launched in late 2017. Mr Al Falih was reported to have replied, "That's why I'm here".

Russian President Vladimir Putin and Saudi King Salman bin Abdulaziz Al Saud discussed in a phone talk economic cooperation, trade and coordination of efforts in global markets, the Kremlin said earlier on Wednesday. Saudi Arabia, which had burnt fuel oil to generate power is increasingly moving to gas-powered electricity to free up crude for export as well as to meet growing demand, particularly during summer months.

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