Who are the winners in the Russia-Saudi Arabia deals?

Who are the winners in the Russia-Saudi Arabia deals?

The King of Saudi Arabia, Salman Ben Abdulaziz al Saud came to Russia for political and 15 commercial negotiations in the field of Petrochemical ($1.1 billion agreement for petrochemical firm Sibur to build a plant in Saudi Arabia, and supply of equipment to Aramco), Gas (Discussions with Novatek), military (the purchase of S-400 air defence systems for USD 3 Billion, Kornet anti-tank guided missile systems and multiple rocket launchers), transport (Saudi Arabia’s Public Investment Fund will invest up to USD 100 million in Russians’ projects, and Russian Railways will participate to the tender of two railways projects in Saudi Arabia), Automotive (supply of Kamaz heavy trucks ), Aerospace (supply of MS-21 aircraft) space exploration (agreement between Roscosmos, and Saudi national center for science and technology KACST),  Renewable Energy (Supply of Solar Energy panels) and Nuclear.

 

The importance of the nuclear program

 

In 2015 The Russian State Atomic Energy Corporation (Rosatom and the King Abdullah City for Atomic a Renewable Energy (K.A.CARE) signed the Intergovernmental Agreement for cooperation in the use of Nuclear Energy for Peaceful Purposes. Two years later, Rosatom and KA CARE signed in Moscow several agreements, including the development of nuclear energy. Future joint projects might include construction of nuclear power reactors, delivery of services in nuclear fuel cycling, including those for nuclear power stations and research reactor facilities.

 

The program, signed on October 5th, remains focus in three areas that Saudi Arabia (KSA) is also negotiating with China: Desalinisation Plants, Small Modular Reactors and Training.

Rosatom offered to open a nuclear science and technology center in KSA to increase their chance to train local engineers with Russian technology.

 

In 2015, The Public Investment Fund (PIF) of Saudi Arabia in partnership with the Russian Direct Investment Fund (RDIF) agreed to invest $10 billion into 20 Russian projects. It was the largest foreign investment in Russia.  As of now more than $1 billion has been spent on nine joint projects.

About Author

Arnaud Lefevre

Arnaud Lefevre is the Chief Executive Officer of Dynatom International. Arnaud is in charge of the international development of the business portfolio.