Long-Term Russian-Saudi Partnership to Increase Investments in Energy Sector- Russian Fund

Sputnik, 14.06.2018

MOSCOW, June 14 (Sputnik) – Long-term cooperation of Russia, Saudi Arabia and other countries in the oil sector will lead to the predictability of oil prices and will increase investments in the energy sphere, the head of the Russian Direct Investment Fund (RDIF), Kirill Dmitriev, said on Thursday.

Earlier in the day, Russian Energy Minister Alexander Novak and his Saudi counterpart Khalid Falih agreed to invite not only the participants of the oil output cuts deal, but also other major oil producers to long-term cooperation.

"The existing agreement has led to the stabilization of oil prices and sustainable growth of the world economy. The long-term extension of partnership between Russia, Saudi Arabia and other countries will increase investments in the energy sphere, will lead to the predictability of oil prices for producers and suppliers and is very positive for the growth of the world economy," Dmitriev told reporters.

The Organization of the Petroleum Exporting Countries (OPEC) and several non-OPEC oil producers reached a deal in Vienna in 2016, agreeing to cut oil output by a total of 1.8 million barrels per day in an effort to stabilize global oil prices. Non-OPEC states pledged to jointly reduce oil output by 558,000 barrels per day, with Russia promising to cut production by 300,000 barrels daily. The agreement, which came into effect in 2017, has been extended twice since then and is expected to remain in effect until the end of 2018.