Russian Economy Minister to Asharq Al-Awsat: Russia is a Reliable Partner for Saudi Arabia

Russia’s Minister of Economic Development, Maxim Reshetnikov, during a session at the St. Petersburg International Economic Forum (SPIEF)
Russia’s Minister of Economic Development, Maxim Reshetnikov, during a session at the St. Petersburg International Economic Forum (SPIEF)
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Russian Economy Minister to Asharq Al-Awsat: Russia is a Reliable Partner for Saudi Arabia

Russia’s Minister of Economic Development, Maxim Reshetnikov, during a session at the St. Petersburg International Economic Forum (SPIEF)
Russia’s Minister of Economic Development, Maxim Reshetnikov, during a session at the St. Petersburg International Economic Forum (SPIEF)

Russia’s Minister of Economic Development Maxim Reshetnikov affirmed his country’s satisfaction with the level of development in its strategic relations with Saudi Arabia, explaining that the Kingdom’s participation as the guest of honor at the 29th St. Petersburg International Economic Forum this year reflects a high level of dialogue and a shared interest in expanding cooperation across all fields.

He noted that this partnership has acquired broader and deeper dimensions within the framework of Vision 2030.

The Kremlin had announced the Kingdom’s selection as the principal guest of honor for this year’s forum, coinciding with the 100th anniversary of diplomatic relations between the two countries.

Saudi Energy Minister Prince Abdulaziz bin Salman is leading a Saudi delegation that includes a number of senior officials and representatives of national institutions and major companies, foremost among them Saudi Aramco.

Reshetnikov told Asharq Al-Awsat on the sidelines of Russia’s leading economic forum, often described as the Russian Davos, that relations between the two countries have developed actively in recent years. He revealed a qualitative leap in bilateral trade indicators, with trade volume more than doubling over the past five years. He added that investment cooperation continues to expand and expressed the expectation that the conclusion of an upcoming intergovernmental agreement on the promotion and protection of mutual investments will provide a strong additional boost for investors in both countries.

Members of the Saudi delegation at the St. Petersburg International Economic Forum (SPIEF).

Coordination Beyond Oil

Reshetnikov said that joint coordination to ensure the stability of global energy supplies represents a central pillar of the bilateral agenda, pointing to the significant international success achieved by the two countries through their leadership of the OPEC+ alliance.

In a related context, Reshetnikov stressed that Russia was a reliable partner in ensuring the Kingdom’s food security, supplying agricultural and food products including wheat, barley, sunflower oil, and poultry. He also pointed to new opportunities for expanding cooperation, revealing that ambitious plans are being studied to establish joint agricultural centers and advanced logistics corridors within the Kingdom in the coming period.

He noted that, within the framework of Vision 2030, Saudi Arabia is actively developing industry and infrastructure, areas in which Russian expertise can be utilized. At the same time, technological and industrial cooperation is becoming increasingly important.

Reshetnikov added that the two sides are working to expand cooperation in advanced technologies, including digitalization, artificial intelligence, smart-city solutions, cybersecurity, and water desalination technologies.

He also expressed his country’s full readiness to participate in the development of Saudi Arabia’s space program, drawing on Russia’s extensive expertise in astronaut training, space biology, and medicine.

Major Tourism Boom

Addressing tourism, the Russian minister described the sector as one of the most promising areas of growth and cooperation between the two countries. Total tourist traffic increased by 38 percent last year, reaching a level ten times higher than that recorded in 2019.

He pointed to the entry into force of a mutual visa-waiver regime for citizens of both countries on May 11, 2026, following the signing of a landmark agreement, as well as the resumption of direct flights by Saudia and flynas. He said he expects interest in travel between the two countries to increase further.

The minister highlighted achievements in developing tourism-sector cooperation, noting that 2025 alone saw more than 143,000 Saudi tourists visit Russia, an increase of 33 percent compared with the previous year.

In the same context, the Russian minister emphasized that his country is working intensively to broaden the scope of tourism exchanges, building on agreements concluded at the highest levels of leadership to establish a solid foundation for the growth of this vital sector.

Reshetnikov said that every effort is being made to ensure that Russia’s domestic tourism sector meets the expectations of Saudi visitors by providing an ideal travel environment suited to their needs and culture.

To achieve this goal and ensure the comfort of visitors from the Kingdom, the minister explained that Russia is rapidly expanding the application of halal standards and Muslim-friendly services across its hospitality sector.

He revealed that the first hotels in Moscow, Sochi, and Kazan have obtained the necessary official certifications, while more than 100 additional hotel establishments have submitted similar applications, which are currently under review.

Significant Improvement in Infrastructure

Reshetnikov outlined the ambitious features of Russia’s tourism infrastructure, noting that it has undergone a profound transformation over the past decade through the construction of modern airports and roads, as well as the redevelopment of city centers and public spaces to create an attractive environment for major investors and entrepreneurs alike.

Russia today has accommodation capacity exceeding one million hotel rooms, in addition to 400 ski resorts featuring more than 500 classified slopes with a combined length exceeding 1,000 kilometers. The country also boasts extensive southern coastlines stretching nearly 2,000 kilometers.

Looking ahead, the Russian minister announced a strategic plan to build 11 coastal resorts and a new year-round marina by 2030. These major projects will be distributed across the shores of five seas, in addition to the area surrounding the renowned Lake Baikal, with a target capacity of 10 million visitors annually.

Reshetnikov extended an open invitation to the Saudi business community to invest in these promising destinations, emphasizing that investors in these projects will benefit from distinguished preferential treatment and describing them as a truly excellent opportunity.

Participants walk past a large screen showing an image of Russian President Vladimir Putin during the St. Petersburg International Economic Forum (SPIEF) in St. Petersburg, Russia, 03 June 2026. EPA/ANATOLY MALTSEV

A Resilient Economy in the Face of Sanctions

Assessing the performance of the Russian economy, Reshetnikov noted that the International Monetary Fund recently raised its forecast for Russia’s economic growth in 2026 to 1.1 percent, based on higher oil prices. He described this as a positive indicator, particularly given the IMF’s cautious assessment of Russia.

He added that investors do not look solely at GDP growth. They also assess the sustainability of macroeconomic policy, the budget position, debt levels, projects with clear profitability and strategic value, and an acceptable level of risk.

The minister said that Russia’s public debt is among the lowest in the G20, standing at around 17 percent of GDP. Over the past three years alone, including 2025, Russia’s GDP has grown by more than 10 percent in real terms.

He argued that this represents annual growth of approximately 3.3 percent, above the global average, allowing Russia to maintain its position as the world’s fourth-largest economy on a purchasing power parity basis.

Reshetnikov stressed the importance of these indicators in demonstrating the attractiveness of the Russian market for foreign investment in general and Arab investment in particular.

He said Russia was an attractive long-term investment destination for Arab investors, particularly in agriculture and fertilizer production, infrastructure, digital technologies, and industrial solutions. These sectors are aligned with the priorities of Gulf countries, including asset diversification and the development of new industries.

He also emphasized the resilience of the Russian economy in the face of external challenges, saying that in recent years the Russian economy has demonstrated its ability to adapt to pressure and maintain positive momentum despite sanctions, the restructuring of logistics chains, and restricted access to Western capital. At the same time, the infrastructure underpinning cooperation remains a key issue, including settlements in national currencies, correspondent banking relations, logistics, and investment protection.



China, US Discuss Tariffs, Farm Trade at First Trade Council Meeting

US and Chinese flags are seen in this illustration taken March 20, 2025. (Reuters)
US and Chinese flags are seen in this illustration taken March 20, 2025. (Reuters)
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China, US Discuss Tariffs, Farm Trade at First Trade Council Meeting

US and Chinese flags are seen in this illustration taken March 20, 2025. (Reuters)
US and Chinese flags are seen in this illustration taken March 20, 2025. (Reuters)

China and the United States held their first trade council meeting under a bilateral economic and trade consultation mechanism via ‌video link ‌on Friday, China's ‌commerce ⁠ministry said on ⁠Saturday.

The two sides held "candid, in-depth and constructive discussions" on implementing outcomes ⁠from previous trade consultations, ‌including ‌tariffs, a reciprocal ‌tariff-reduction arrangement involving $30 ‌billion on each side, agricultural trade and other issues of ‌note, the ministry said.

Both sides will ⁠continue ⁠to use the council to address trade concerns, expand cooperation and reduce outstanding issues, it added.


IMF Says More Work Needed on Lebanon Reforms

A man walks past Lebanon's Central Bank headquarters in Beirut on November 10, 2026. (AFP)
A man walks past Lebanon's Central Bank headquarters in Beirut on November 10, 2026. (AFP)
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IMF Says More Work Needed on Lebanon Reforms

A man walks past Lebanon's Central Bank headquarters in Beirut on November 10, 2026. (AFP)
A man walks past Lebanon's Central Bank headquarters in Beirut on November 10, 2026. (AFP)

The International Monetary Fund said on Friday that more work was needed to reach an agreement on restructuring Lebanon's banking sector, one of the steps towards unlocking billions of dollars in financial assistance.

An IMF staff-level agreement reached in April 2022 laid out conditions to unlock assistance, including a law on the distribution of losses in the banking sector, known as the financial gap law, which parliament has still not voted on.

In a statement at the end of meetings that began on Tuesday, the IMF said "there was progress in further clarifying the approaches under consideration by the Banque du Liban (BdL) and the Government regarding banking sector reform, the draft financial regulation law and the recovery of deposits, and aligning them with international standards".

It however noted that "further work is needed to reach an agreement on a strategy for an effective and durable restructuring of Lebanon's banking sector, leading to a sound and resilient system".

The cabinet submitted a draft of the law to parliament in 2025, but the text is contested by the banking sector and political parties, preventing a vote.

Differences over estimates of losses and their distribution have stalled negotiations with the IMF.

In 2022, the government estimated losses resulting from the 2019 financial crisis at around $70 billion, a figure believed to have increased over the last seven years during which the crisis has remained unresolved.

Lebanese Finance Minister Yassin Jaber said during a news conference that he hoped to "achieve progress that would allow us to reach an agreement on a program with the IMF and sign it during the first quarter of next year, and by its end at the latest".

Lebanon's economic crisis, which the World Bank has ranked among the worst since 1850, has deprived depositors of access to all of their funds, destroyed confidence in the banking sector and led to greater reliance on cash liquidity in various economic and commercial activities.


Silver Demand Seen Down 5% This Year Due to Weaker Jewellery Purchases

Silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. (Reuters)
Silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. (Reuters)
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Silver Demand Seen Down 5% This Year Due to Weaker Jewellery Purchases

Silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. (Reuters)
Silver bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, January 10, 2025. (Reuters)

Silver demand is expected to fall by 5% in 2026 due to weaker jewellery demand and lower consumption in solar cells, where high prices have accelerated substitution, research showed on Friday.

Research done by consultancy Metals Focus for the Silver Institute puts demand at 1.08 billion troy ounces this year.

Silver, used in jewellery, electronics, electric vehicles and solar panels as well as for investment, is ‌down 59% ‌to $50 an ounce since retail buying drove prices ‌to ⁠a record high ⁠of $121.6 in January.

The base for that rally was created in 2025, when silver surged 147%, as massive inflows of the metal to US inventories due to tariff uncertainty and into silver-backed exchange-traded products (ETPs) tightened liquidity in the London market.

This year, expectations for higher interest rates, a stronger dollar and higher bond yields have weighed on investment ⁠sentiment.

Silver released through ETP selling, outflows from stocks ‌in the US and a smaller ‌market deficit improved liquidity in the physical market, the Silver Institute and ‌consultancy Metals Focus said on Friday.

Metals Focus sees net ETP ‌outflows of 45 million ounces this year after 278 million ounces of inflows in 2025.

As of early November, ETP holdings stood at 1.25 billion ounces.

Industrial demand is expected to fall by 3% in 2026 as installations ‌in photovoltaics have fallen short of expectations, particularly in China, while January's record silver prices accelerated ⁠substitution.

Meanwhile, demand ⁠for jewellery and silverware is forecast to decline by 22% and 17%, respectively, as higher prices and weaker rural spending in India encouraged purchases of smaller, lighter products.

Demand in China and the US is also subdued. Strong retail investment in late 2025 and early 2026 gave way to far more subdued buying from March as silver prices fell, Metals Focus said.

It expects global bar and coin demand to fall 2% this year, with US retail investment hitting its lowest level since 2010.