Saudi Arabia Kingdom Holding has invested $500 million in Russian oil companies

By investing in Gazprom (GZPFY)Rosneft and Lukoil, Kingdom was likely looking for undervalued assets, but its decision came as many Western countries imposed sanctions on Russian energy companies and their executives after Russia’s February 24 invasion of Ukraine.

Saudi Arabia and other Gulf states have so far tried to maintain what they say is a neutral stance on the war in Ukraine, frustrating some Western officials who have sought to isolate Russia in the face of the invasion. .

In February, Kingdom invested in global certificates of deposit from Gazprom and Roseneft worth 1.37 billion riyals ($365 million) and 196 million riyals ($52 million) respectively.

The company also invested 410 million riyals ($109 million) in Lukoil’s US certificates of deposit between February and March, according to documents filed Sunday as part of a lengthy disclosure of recent investments. She gave no reason for any of her specific investments.

Kingdom Holding, which is 16.9% owned by the Saudi sovereign wealth fund chaired by Crown Prince Mohammed Bin Salman, had yet to reveal details of its investments.

Prince Alwaleed bin Talal rose to international prominence after making a successful big bet on Citigroup (VS) in the 1990s and was one of the first investors in Apple (AAPL).
The prince has also earned hundreds of millions of dollars investing in companies such as Uber (UBER) and Twitter (TWTR).

Alwaleed’s investment style has focused on new opportunities that could be lucrative but carry risk, as well as undervalued assets, a source with knowledge of Kingdom’s business said in June.

Saudi Arabia and Russia lead the OPEC+ group, an alliance formed in 2017 between the Organization of the Petroleum Exporting Countries (OPEC) and allied producers.


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