Saudi-Russia Trade Experiences Boost After Decades of Hiatus
While Saudi Arabia's potential accession to BRICS may improve bilateral ties, economic and geopolitical differences are likely to cause persistent instability in their relationship.
Trade between Russia and Saudi Arabia has historically been low, partly due to Cold War-era animosity and various structural factors. However, as Saudi Arabia seeks to deepen its ties with BRICS countries, both nations are now working to expand their trade relations despite existing barriers. In 2023, Russian Deputy Prime Minister Dmitry Patrushev reported that trade in agricultural products accounted for nearly 90% of the total trade turnover, which reached $1 billion. Key Russian exports to Saudi Arabia included grain, oil, fat, confectionery, and halal meat. Both countries aim to increase their trade turnover to $7 billion by 2030, according to official plans.
The limited prospects for trade growth between Saudi Arabia and Russia are influenced by structural factors. Both economies are heavily reliant on energy and commodities exports. As two of the world's largest energy exporters, their economic and business complementarity remains limited in the medium term. Russia has shown interest in participating in Saudi industrial zones to pursue higher-value trade. However, this ambition is unlikely to materialize soon, as Saudi Arabia continues to exercise protectionist measures to shield its nascent domestic industries from competition, including from BRICS countries.
Given these limitations, trade is unlikely to be the primary factor shaping the Saudi-Russian relationship. Security and geopolitical issues are expected to play a more significant role, particularly as Russia seeks a greater influence in Yemen and Iraq—regions that are major security concerns for Saudi Arabia. While Saudi Arabia's potential accession to BRICS may improve bilateral ties, economic and geopolitical differences are likely to cause persistent instability in their relationship. Nonetheless, their mutual reliance on China as a key energy customer and import destination could help bridge their differences, as seen in China's mediation between Iran and Saudi Arabia.