Russia and Saudi Arabia: Partnership and Common Interests

Abstract

There have been important changes in the development of political and economic relations between the Russian Federation and the Kingdom of Saudi Arabia (KSA), during which qualitatively new horizons of cooperation have been outlined. The turn of Russia and Saudi Arabia towards each other was, apparently, the result of political will and a rethinking of the role and place of Moscow and Riyadh at the global and regional levels. One of the significant features of these changes was the launch of mechanisms for cooperation in the energy sector, which was practically not considered during the Soviet Union, nor in the 1990s after the collapse of the USSR. There were several attempts to align positions in the energy sector. Energy ties were intensified because of official bilateral contacts at the highest level. During Vladimir Putin’s state visit to the KSA in October 2019, the Russian-Saudi Economic Council (RSEC) was established. It includes the heads of major companies in both countries. RSEC has become one of the most important mechanisms for coordinating investment cooperation. It focuses on large-scale joint projects, including localization of production in the KSA and support for Russian companies to enter the country’s market.

Keywords:

energy diplomacy, Russia, Saudi Arabia, energy dialogue, OPEC Plus, world oil market, balance of interests