The world's biggest oil producers, Russia and Saudi Arabia, have announced a $1 billion fund to invest in energy projects — marking another chapter in the blossoming economic and political partnership between the two countries.
The latest deal will see Russia and Saudi Arabia strengthen their cooperation in oil, gas, electricity and renewable energy, Russian Energy Minister Alexander Novak told Al Arabiya television Monday, Reuters reported.
It signifies an increasingly close strategic partnership between the two oil-rich states.
RBC Capital Markets' Global Head of Commodity Strategy Helima Croft told CNBC on Tuesday that the $1 billion deal was "just the tip of the iceberg" and that she expected a lot more cooperation and joint ventures on oil, energy, infrastructure and public investment projects.
"It's remarkable what's going on with Russia and Saudi Arabia now. Back in 2015, Russia said it had no intention of cooperating with Saudi Arabia but look at it now … You just have to look at the last OPEC meeting in May and look at Saudi Arabia Energy Minister Khalid al-Falih and Russian Energy Minister Alexander Novak's comments – it is like watching an OPEC 'bromance,'" Croft told CNBC, referring to the increasingly close economic and political relationship between the two nations, particularly in terms of oil.