The world’s largest oil producers announced plans to set up a $1 billion fund to invest in energy projects, technology and equipment on Monday.
Russian Energy Minister Alexander Novak, in an interview with Al Arabiya television, said a joint fund will expand cooperation between the two countries in the oil and gas sector within the framework of OPEC and on non-OPEC projects.
It will also have interests in electric and renewable power and oil and gas equipment, he added.
Russia "focuses on development of cooperation [with Saudi Arabia] not merely on oil issues within the OPEC framework but also outside the cartel, and on development of cooperation in the oil and gas sector, in the electric power sector and renewable energy resources,” Novak said.
Details of the different projects the fund will finance will be ironed out and announced on a state visit by Saudi King in Moscow on October 5 he added.
State funds from both states will finance the development of technology and equipment in the oil and gas sector, a report by Saudi news agency SPA said.
The announcement comes comes following an agreement to cooperate in the oil and gas sector made on the side-lines of the 2016 G20 Summit in China, SPA added.
The agreement will see the two countries exchange new technology, knowledge and technical expertise in oil production, refining, storage, transportation, distribution, manufacturing and research activities as well as cooperation in the production of electricity and renewable energy, according to SPA.
The two countries also seek to establish a common database on advanced energy technologies that will be tested and financed through sovereign wealth funds belonging to both countries, SPA said.
The trade volume between the two countries reached about $2.8 billion in 2016 in line with the Kingdom’s ambitious reform Vision 2030 programme.
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