Yesterday (July 7) a Russian newsagency announced more details of the growing entente with Saudi Arabia (who has been seen in the past as working within the western alliance).
The report is written by M.K.Bhadrakumar, a reliable Indian commentator.
Saudi Arabia puts big money in Russian economy
BY M.K. BHADRAKUMAR on JULY 7, 2015 in ASIA TIMES NEWS & FEATURES
The Russian news agency Sputnik has reported on an agreement signed between the Russian Direct Investment Fund [RDIF] and the Public Investment Fund of Saudi Arabia “to create a partnership to invest $10 billion into projects implemented in Russia.” The report said the Saudi funds will be invested within 4-5 years starting from this year and that seven concrete projects are “currently in the final stage”. The majority of Saudi investment will be made on Russia’s agricultural projects, as well as on medicine, logistics and the retail and real estate sectors.Saudi Deputy Crown Prince Mohammed bin Salman with Russian President Vladimir Putin at the Konstantin Palace outside St. Petersburg, Russia, in June this year
An interesting feature of the deal is that the Saudi investment vehicle will combine with other Asian sovereign wealth funds, especially the Russia-China investment Fund (which is backed by the China Investment Corporation.)
Meanwhile, the RDIF disclosed that it also signed an agreement with another Saudi Arabian sovereign-wealth fund, the Saudi Arabian General Investment Authority, to undertake projects in Saudi Arabia and other Middle East countries.
All this has developed since Crown Prince Mohammed made that shock visit to Moscow in June.