Russia’s Direct Investment Fund (RDIF) and the Public Investment Fund (PIF) of Saudi Arabia have both inked an agreement to invest $10 billion into projects implemented in Russia, confirmed Kirill Dmitriev, RDIF’s chief executive on Monday evening.
“The first seven projects have received preliminary approval, and we expect to close 10 deals before the end of the year,” said the RDIF chief executive.
The deal was discussed during Saudi Prince Mohammed bin Salman al-Saud’s visit to the St Petersburg economic forum, where Russian President Vladimir Putin addressed global investment fund heads.
Russia has been taking desperate measures to avoid Western funding, which has been affected by the sanctions placed on the country after it was heavily criticised by the EU and NATO for annexing Crimea.
“The key investments will take place on Russian territory, but we will also invest in Saudi Arabia, which we consider a very promising market,” said Dmitriev, according to the Wall Street Journal.
The Journal, citing Dmitriev, said that funds from PIF will be spent on Russian agricultural projects, medicine, logistics, and the country’s retail and real estate sector.
Similarly RDIF has also stated that it signed an agreement with another Saudi sovereign-wealth fund, the Saudi Arabian General Investment Authority. The deal will enable both countries to invest in both Saudi Arabia and other Middle Eastern countries.