A distinguished Saudi billionaire poured greater than $500 million into Russia’s high state-linked vitality corporations this yr across the similar time because the Kremlin launched its brutal invasion of Ukraine, a inventory change submitting confirmed.
Kingdom Holding, the Saudi agency based by Prince Alwaleed Bin Talal, purchased the equal of $365 million in depositary receipts for Russia’s Gazprom in a transaction that happened someday in February, in response to the filings.
Alwaleed’s agency additionally dumped $52 million into Rosneft in February. In a commerce that happened between February and March, Kingdom additionally invested $109 million in Lukoil’s US-based depository receipts, which characterize a overseas firm’s publicly traded inventory.
The filings didn’t reveal the rationale for the investments.
Nonetheless, the Saudi billionaire wager on Russian corporations on the similar time that the Ukraine invasion prompted Western nations to enact sweeping financial sanctions in opposition to the Kremlin and Western-based corporations to depart Russia in droves.
The stakes have plummeted in worth because the sanctions brought on lasting harm to the Russian inventory market and economic system.
Saudi Arabia and Russia have deep ties within the international vitality market. OPEC+, a collective consisting of members of the OPEC oil cartel and different allied nations together with Russia, has resisted calls to spice up oil manufacturing to satisfy sturdy demand during the last yr.
Kingdom’s funding within the Russian corporations was first reported by Bloomberg, which famous the Saudi agency didn’t reply to inquiries as as to whether it nonetheless held the investments.
The inventory change submitting additionally revealed that Kingdom invested in Chinese language corporations Tencent and Alibaba in 2021.
Alwaleed is likely one of the world’s richest people, with an estimated private fortune of $16.9 billion, in response to the Bloomberg Billionaires Index. His agency holds stakes in a number of US-based firms, together with Snap, Twitter, Uber and Lyft.
Saudi Arabia’s sovereign wealth fund, which is led by Crown Prince Mohammed bin Salman, holds a 16.9% stake in Kingdom Holding, in response to Bloomberg.
Oil big Saudi Aramco earned a whopping $88 billion over the primary half of this yr as international shortages and cargo disruptions resulted in surging costs per barrel. The agency mentioned its income jumped 90% within the second quarter year-over-year.
In the meantime, Russia has continued to yield huge income from its oil and gasoline business throughout the Ukraine battle. Whereas the US and lots of Western corporations ended purchases of Russian oil, Europe stays closely reliant on Russian vitality.