Saudi Arabia is reportedly set to host seven sanctioned Russian companies next week, including a manufacturer of military helicopters used in the Ukraine war. This move, aimed at enhancing business with the Gulf state, is likely to escalate already strained relations with the United States.
Among the companies participating in the event are several with direct links to the Russian military. These include state corporations implicated in the invasion of Ukraine and the agency overseeing a Ukrainian nuclear plant seized by the Russian military last year. The forthcoming event represents the first of its kind, according to Alexey Gruzdev, Russian deputy industry and trade minister.
Manufacturers such as Russian Helicopters and Kamaz, an armoured vehicle manufacturer sanctioned for aiding Russia’s war effort, are on the attendees list. Also listed are Rostec, a state-owned defense systems and technology corporation, and Rosatom, Russia’s state nuclear energy company, which has been accused of facilitating the seizure of a Ukrainian nuclear power plant.
Saudi Arabia’s alignment with Russian firms penalized by western nations for their involvement in Ukraine’s invasion is poised to further strain its already tense relationship with Washington. A Saudi trade event insider, speaking anonymously, revealed that Russian delegates are keen on securing joint investment for business projects and other diplomatic support.
The source further added that Saudi Arabia’s investment ministry is contemplating opening an office in Moscow. This move reflects a significant shift in Saudi policy towards Russia and China and away from the US and western Europe.
This emerging alignment with Moscow has already been a source of discord with Washington. Last year, Saudi Arabia opted to reduce oil production before US midterm elections, siding with Russia over the US, which led to threats of “consequences” from President Biden.
The upcoming Saudi-Russian trade meeting also potentially unsettles the UK government, considering it occurs shortly after a British trade mission targeted at securing an investment deal with the Gulf Cooperation Council, of which Saudi Arabia is a part.
Saudi Arabia’s decision to engage multiple global powers is part of its strategic positioning, according to Saudi investment minister, Khalid Al-Falih. Despite existing tensions, Al-Falih insisted that Saudi trade with China and the US would not be jeopardized, marking a significant shift towards a multi-polar world.
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