Published: Wed, October 04, 2017
People | By Neil Grant

Russian Federation woos Saudi investment in LNG

Russian Federation woos Saudi investment in LNG

The world's biggest oil producers, Russian Federation and Saudi Arabia, have announced a $1 billion fund to invest in energy projects - marking another chapter in the blossoming economic and political partnership between the two countries.

It signifies an increasingly close strategic partnership between the two oil-rich states.

General Director of the Russian Direct Investment Fund Kirill Dmitriev told reporters earlier that Saudi Arabia's investment in Russia will exceed $1 bln after the announcement of new landmark deals during the visit of Saudi Arabia's King Salman bin Abdulaziz Al Saud to Moscow on October 5.

The Organization of the Petroleum Exporting Countries, Russia and other producers agreed to cut their combined oil production by nearly 1.8 million barrels per day from January in a bid to reduce a supply glut that had driven down prices. Meanwhile, it was reported that the nations may organize grain exports from Russian Federation to Saudi Arabia, as well as charter flights and a visa center in Crimea.

"We see a very significant interest in investing in Russian Federation not only from the Saudi Arabia, but also from our companies to work in Saudi Arabia", Dmitriev said. But as authorities seek to reduce the kingdom's reliance on oil, they're also leading efforts among OPEC members and some other major producers to bolster prices by cutting output.

King Salman bin Abdulaziz will kick off on Thursday his first official visit to Russia where he will discuss with Russian President Vladimir Putin joint cooperation between the two countries, in addition to regional and global issues.

King Salman bin Abdulaziz will kick off on Thursday his first official visit to Russian Federation. The world's largest ride-hailing startup also plans to open support centers for female Uber drivers in the kingdom, with the first one to open in Riyadh, but Gore-Coty did not say when.

Chris Weafer, senior partner at Macro Advisory Partners, told CNBC on Tuesday that King Salman's attendance at the meeting was "very significant".

Saudi Arabia's economy contracted in the first two quarters this year as the OPEC kingpin continues to struggle to cope with low crude prices and painful reforms, official figures show.

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