It may sound strange that a Middle East ally of US tries to build close economic relationships with Russia. Anyway, new investments of one of the prominent oil states of the region may presumably strengthen Russian economy and enhance its chances to resist Western economic sanctions.

However, Saudi Arabia signed a commitment to invest up to $10 billion in Russia within four to five years. This money is likely to become the largest foreign investment for the next years. Russia is going to sign the deals with China, South Korea and the United Arab Emirates within next three months as well. It is also reported that Russian Direct Investment Fund has signed an agreement of cooperation with the Saudi Arabian  General Investment Authority to search for mutual investment projects in Russia.

Kirill Dmitriev, head of  Russian Direct Investment Fund , added that Russia and Saudi Arabia plan to implement 10 deals … before the end of this year, and seven of them are currently in their final stage.

The Wall Street Journal, citing Dmitriev, said that a majority of the funds from Public Investment Fund of Saudi Arabia will be spent on Russia’s agricultural projects, as well as on medicine, logistics, and the country’s retail and real estate sectors. Russia is likely to invest in Saudi Arabia in response as the Middle East state is considered as a very promising market.

Russia is not going to stay under pressure of Western sanctions and is steadily turning towards Asian markets and investors. The new deals and projects are aimed to reduce Russia’s reliance on Europe and on the West on the whole. There is also a chance that Moscow can win over the Saudi Arabian government  and weaken positions of the United States on the East.