Saudi Arabia is currently investing over $1 billion in over 20 Russian projects including the construction of a petrochemical complex and Pulkovo Airport in St Petersburg, Russian Energy Minister and co-chairman of the Russian-Saudi Intergovernmental Commission Alexander Novak said.
Speaking in an interview broadcast on Al Arabiya TV on Monday, Novak said that the fund will focus on "strengthening of cooperation in oil, gas, electricity renewable energy and other projects for oil and gas equipment."
The huge Saudi investment will fund and contribute towards both technology and energy projects, including the construction of a small hydro power plant, logistics companies and building complexes.
King Salman of Saudi Arabia arrived in Moscow, Russia, yesterday for a state visit during which he will discuss the topic of the investment fund and finalising what deals can be enacted in the near future to strengthen relations between the two countries.
"We are working on a number of agreements and we will announce them during the visit," Novak said regarding the efforts to expand Saudi-Russian cooperation within the energy industry.
He also mentioned that Russian firms have been discussing possible future deals with energy giant Saudi Aramco, such as the provision of drilling services in Saudi Arabia and in crude trading.
The announcement of the Saudi investment comes as the Saudi Minister of Energy and Industry, Khalid Al-Falih, claimed that the cooperation between the Kingdom and Russia has "breathed life back into [Organisation of Petroleum Exporting Countries] OPEC", which would help raise the price of oil for the benefit of both countries.
Since 2014, the price of oil has been at an all-time low after its deliberate reduction on the world market, but Novak claims that he has seen it rise to $50 to $60 per barrel, proving that the price of oil is stabilising.