The U.S. narrative about Russia is that it's a waning power run by an overly ambitious dictator that is doomed to isolation and diminishing global influence. That's not how an important U.S. ally sees it, however, judging from the $10 billion deal a Saudi Arabian state investment fund has signed with the Russian direct investment agency.
The Public Investment Fund, which has big holdings in Saudi Arabia's biggest non-oil companies (including 47 percent of the chemicals and steel conglomerate Saudi Basic Industries), is setting up a partnership with the Russian Direct Investment Fund. The state entity has $10 billion in capital that it can invest in Russia alongside foreign partners. As part of the deal, the Saudis have agreed to invest $10 billion in Russian agriculture, health care, retail, transport and real estate. According to Kirill Dmitriev, the chief executive of the Russian Direct Investment Fund, seven projects have already been approved.
The deal follows a visit to the St. Petersburg Economic Forum by the son of King Salman bin Abdul-Aziz al-Saud, Mohammed bin Salman, who is defense minister and deputy crown prince. The prince invited President Vladimir Putin to visit Saudi Arabia and conveyed to the king an invitation from Putin to visit Russia.