Saudi Arabia's Public Investment Fund (PIF) is to invest up to $10 billion
in Russia within the next five years, in a move signalling a softening in
relations between the two countries.
The country's sovereign wealth investment fund agreed to pour $10 billion over the next five years approximately in the Russia Direct Investment Fund (RDIF), a government-run investment fund, says CNBC.
Kirill Dmitriev, RDIF's Chief Executive, said "the first seven projects have received preliminary approval, and RDIF expects to close 10 deals before the end of the year," adding that the investment would be of big importance for Russia.
In an inteview with CNBC, Dmitriev said the agreement is about building an important partnership.
"Russia needs to be an integrated global player. We are also going to invest in Saudi Arabia, which is a very attractive market for us so the deal is very interesting," he said.
RDIF also said it had signed a partnership agreement with another Saudi Arabian sovereign wealth fund, the Saudi Arabian General Investment Authority (SAGIA).
"The parties will identify attractive joint investment opportunities in the SA and the Middle East," RDIF said.
Funds from Saudi Arabia would be invested in such areas as infrastructure and agriculture, healthcare, retail and real estate.
Dmitriev refused to comment
on Russia's political background. However, there is an opinion that Saudi's investment was politically conditioned, aimed to rebuild relations and get Russia on side over how to finish a four-year civil war in Syria. In June Russia's President Vladimir Putin reaffirmed his support for Bashar al-Asad.
RDIF also has joint investment funds with France and Italy.
