Bahrain, Russia sign investment deal amid Western sanctions

  • Share via facebook
  • Tweet this
  • Bookmark and Share

The governments of Bahrain and Russia have signed a deal to cooperate on investments, at a time when US and European governments are imposing economic sanctions on Russia over the crisis in Ukraine.

Bahrain is a US diplomatic ally in the Gulf, and its decision suggests Western sanctions may not deter other countries from continuing to expand business ties with Russia.

In a statement on Tuesday, the Russian Direct Investment Fund (RDIF) said it had signed a memorandum of understanding with Bahraini sovereign wealth fund Mumtalakat to identify and work together on investment opportunities in their countries.

Mumtalakat chief executive Mahmood al-Kooheji will join the RDIF's international advisory board, helping to formulate its strategic direction, the statement added.

The Bahraini fund is one of the smaller sovereign funds in the Gulf, with $7.1 billion of assets as of last September. The RDIF is a $10 billion fund created by Russia's government to make equity investments, mainly in the Russian economy.

The official Bahraini News Agency confirmed the deal between the funds, signed after a visit to Moscow by Crown Prince Salman Bin Hamad al-Khalifa.

In addition, Bahrain's government has revised visa policies to make it easier for Russian citizens to travel to the kingdom on business, while Bahrain's national carrier Gulf Air will open a direct route between Moscow andManama, the agency said.

Earlier on Tuesday, the European Union announced asset freezes and travel bans on 15 Russians and Ukrainians in response to Moscow's actions in Ukraine. On Monday, the United States imposed sanctions on seven Russians and 17 companies linked to Russian President Vladimir Putin.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Saudi Arabia, Kuwait shared zone tensions underlie oilfield closure

Saudi Arabia, Kuwait shared zone tensions underlie oilfield closure

Crude output from jointly-run offshore Khafji oilfield has been...

The billion dollar war

The billion dollar war

As US president Barack Obama seeks to slash the Pentagon’s budget...

End of Gaza war doesn't translate into peace

End of Gaza war doesn't translate into peace

A week after the guns fell silent in the Gaza war, Israel and...

Most Discussed