Aramco Inks Pact with Renault, Geely for Engine Venture

Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov
Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov
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Aramco Inks Pact with Renault, Geely for Engine Venture

Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov
Saudi Aramco logo is pictured at the oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov

Saudi Aramco has agreed to take a minority stake in a new powertrain engine company that French car maker Renault SA and China's Geely Automobile Holdings Ltd plan to set up jointly, they said on Thursday.

The new joint venture is aimed at developing more-efficient gasoline engines and hybrid systems.

With a global network of 17 powertrain plants and five R&D centers across three continents, the planned company is intended to be a standalone global supplier with a combined capacity of over five million internal combustion, hybrid and plug-in hybrid engines and transmissions per year, supplying over 130 countries and regions.

Aramco Executive Vice President of Downstream Mohammed Y. Al Qahtani described the move as a “new milestone in our ongoing commitment to transportation technologies," saying it "presents a platform to support Aramco’s research and development in engine innovation.”

“Our planned collaboration with Geely and Renault would support the development of powertrains across the automotive industry, and aligns with our broader efforts across our global operations.”

"This partnership with Aramco will... give it a head start in the race towards ultra-low-emissions ICE powertrain technology," Renault CEO Luca de Meo said in the statement.

"Aramco’s entry brings to the table unique know-how that will help develop breakthrough innovations in the fields of synthetic fuels and hydrogen," De Meo said.

“The proposed investment by Aramco represents recognition from global industry leaders in the PWT’s future business prospects and vision for pioneering low and carbon-free fuels such as methanol and hydrogen,” said Daniel Li, CEO of Geely Holding Group.



BRICS Group Condemns Increase of Tariffs in Summit Overshadowed by Middle East Tensions

Russian Foreign Minister, Sergei Lavrov, Abu Dhabi Crown Prince, Khalid bin Mohamed bin Zayed al-Nahyan, Indonesian President, Prabowo Subianto, South African President, Cyril Ramaphosa, Brazilian President, Luiz Inacio Lula da Silva, Indian Prime Minister, Narendra Modi, Chinese Prime Minister, Li Qiang, Ethiopian Prime Minister, Abiy Ahmed, Egyptian Prime Minister, Mostafa Madbouly, and Iranian Foreign Minister, Abbas Araghchi pose during the opening of the BRICS summit in Rio de Janeiro, Brazil, 06 July 2025.  EPA/ANDRE COELHO
Russian Foreign Minister, Sergei Lavrov, Abu Dhabi Crown Prince, Khalid bin Mohamed bin Zayed al-Nahyan, Indonesian President, Prabowo Subianto, South African President, Cyril Ramaphosa, Brazilian President, Luiz Inacio Lula da Silva, Indian Prime Minister, Narendra Modi, Chinese Prime Minister, Li Qiang, Ethiopian Prime Minister, Abiy Ahmed, Egyptian Prime Minister, Mostafa Madbouly, and Iranian Foreign Minister, Abbas Araghchi pose during the opening of the BRICS summit in Rio de Janeiro, Brazil, 06 July 2025. EPA/ANDRE COELHO
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BRICS Group Condemns Increase of Tariffs in Summit Overshadowed by Middle East Tensions

Russian Foreign Minister, Sergei Lavrov, Abu Dhabi Crown Prince, Khalid bin Mohamed bin Zayed al-Nahyan, Indonesian President, Prabowo Subianto, South African President, Cyril Ramaphosa, Brazilian President, Luiz Inacio Lula da Silva, Indian Prime Minister, Narendra Modi, Chinese Prime Minister, Li Qiang, Ethiopian Prime Minister, Abiy Ahmed, Egyptian Prime Minister, Mostafa Madbouly, and Iranian Foreign Minister, Abbas Araghchi pose during the opening of the BRICS summit in Rio de Janeiro, Brazil, 06 July 2025.  EPA/ANDRE COELHO
Russian Foreign Minister, Sergei Lavrov, Abu Dhabi Crown Prince, Khalid bin Mohamed bin Zayed al-Nahyan, Indonesian President, Prabowo Subianto, South African President, Cyril Ramaphosa, Brazilian President, Luiz Inacio Lula da Silva, Indian Prime Minister, Narendra Modi, Chinese Prime Minister, Li Qiang, Ethiopian Prime Minister, Abiy Ahmed, Egyptian Prime Minister, Mostafa Madbouly, and Iranian Foreign Minister, Abbas Araghchi pose during the opening of the BRICS summit in Rio de Janeiro, Brazil, 06 July 2025. EPA/ANDRE COELHO

The BRICS bloc of developing nations on Sunday condemned the increase of tariffs and attacks on Iran, but refrained from naming US President Donald Trump. The group's declaration, which also took aim at Israel's military actions in the Middle East, also spared its member Russia from criticism and mentioned war-torn Ukraine just once.

The two-day summit was marked by the absences of two of its most powerful members. China’s President Xi Jinping did not attend a BRICS summit for the first time since he became his country’s leader in 2012. Russian President Vladimir Putin, who spoke via videoconference, continues to mostly avoid traveling abroad due to an international arrest warrant issued after Russia invaded Ukraine.

In an indirect swipe at the US, the group's declaration raised “serious concerns” about the rise of tariffs which it said were “inconsistent with WTO (World Trade Organization) rules.” The BRICS added that those restrictions “threaten to reduce global trade, disrupt global supply chains, and introduce uncertainty.”

Trump, in a post on his social media platform late Sunday, said any country that aligns itself with what he termed “the Anti-American policies of BRICS” would be levied an added 10% tariff.

Brazil's President Luiz Inácio Lula da Silva, who hosted the summit, criticized NATO's decision to hike military spending by 5% of GDP annually by 2035. That sentiment was later echoed in the group's declaration.

“It is always easier to invest in war than in peace,” Lula said at the opening of the summit, which is scheduled to continue on Monday.

Iran in attendance

Iranian President Masoud Pezeshkian, who was expected to attend the summit before the attacks on his country in June, sent his foreign minister Abbas Araghchi to the meeting in Rio.

The group's declaration criticized the attacks on Iran without mentioning the US or Israel, the two nations that conducted them.

In his speech, Araghchi told leaders he had pushed for every member of the United Nations to condemn Israel strongly. He added Israel and the US should be accountable for rights violations. The Iranian foreign minister said the aftermath of the war “will not be limited” to one country.

“The entire region and beyond will be damaged,” Araghchi said.

BRICS leaders expressed “grave concern” for the humanitarian situation in Gaza, called for the release of all hostages, a return to the negotiating table and reaffirmed their commitment to the two-state solution.

Later, Iran's Araghchi said in a separate statement on messaging app Telegram that his government had expressed its reservation regarding a two-state solution in a note, saying it will not work “just as it has not worked in the past.”

Also on Telegram, Russia’s foreign ministry in another statement named the US and Israel, and condemned the “unprovoked military strikes” against Iran.

Russia spared

The group's 31-page declaration mentions Ukraine just once, while condemning “in the strongest terms” recent Ukrainian attacks on Russia.

“We recall our national positions concerning the conflict in Ukraine as expressed in the appropriate fora, including the UN Security Council and the UN General Assembly,” the group said.

Avoid Trump's tariffs

While Lula advocated on Sunday for the reform of Western-led global institutions, Brazil aimed to avoid becoming the target of higher tariffs.

Trump has threatened to impose 100% tariffs against the bloc if they take any moves to undermine the dollar. Last year, at the summit hosted by Russia in Kazan, the Kremlin sought to develop alternatives to US-dominated payment systems which would allow it to dodge Western sanctions imposed after Russia’s invasion of Ukraine in February 2022

Brazil decided to focus on less controversial issues in the summit, such as promoting trade relations between members and global health, after Trump returned to the White House, said Ana Garcia, a professor at the Rio de Janeiro Federal Rural University.

“Brazil wants the least amount of damage possible and to avoid drawing the attention of the Trump administration to prevent any type of risk to the Brazilian economy,” Garcia said.

'Best opportunity for emerging countries'

BRICS was founded by Brazil, Russia, India, China and South Africa, but the group last year expanded to include Indonesia, Iran, Egypt, Ethiopia, and the United Arab Emirates.

As well as new members, the bloc has 10 strategic partner countries, a category created at last year’s summit that includes Belarus, Cuba and Vietnam.

That rapid expansion led Brazil to put housekeeping issues — officially termed institutional development — on the agenda to better integrate new members and boost internal cohesion.

Despite notable absences, the summit is important for attendees, especially in the context of instability provoked by Trump’s tariff wars, said Bruce Scheidl, a researcher at the University of Sao Paulo’s BRICS study group.

“The summit offers the best opportunity for emerging countries to respond, in the sense of seeking alternatives and diversifying their economic partnerships,” Scheidl said.

The meeting was also an opportunity to advance climate negotiations and commitments on protecting the environment before November's COP 30 climate talks in the Amazonian city of Belem.