MONEYSaudi's Kingdom Holding invested $500 million in Russian oil companies

Saudi’s Kingdom Holding invested $500 million in Russian oil companies

By investing in Gazprom (GZPFY), Rosneft and Lukoil, Kingdom was seemingly looking for undervalued property, however its transfer got here as many Western nations imposed sanctions on Russian vitality companies and their executives following Russia’s invasion of Ukraine on Feb. 24.

Saudi Arabia and different Gulf states have to this point tried to keep up what they are saying is a impartial place on the battle in Ukraine, irritating some Western officers who’ve sought to isolate Russia over the invasion.

Kingdom in February invested in international depository receipts of Gazprom and Roseneft value 1.37 billion riyals ($365 million) and 196 million riyals ($52 million) respectively.

The agency additionally invested 410 million riyals ($109 million) in Lukoil’s US depository receipts between February and March, filings confirmed on Sunday as a part of a prolonged disclosure of latest investments. It gave no motive for any of its particular investments.

Kingdom Holding, which is 16.9% owned by Saudi Arabia’s sovereign wealth fund chaired by crown prince Mohammed Bin Salman, had not beforehand revealed the small print of its investments.

Prince Alwaleed bin Talal rose to worldwide prominence after making a giant profitable guess on Citigroup (C) within the Nineteen Nineties and he was an early investor in Apple (AAPL).
The prince has additionally made lots of of tens of millions of {dollars} by investing in corporations akin to Uber (UBER) and Twitter (TWTR).

Alwaleed’s funding model has centered on new alternatives that might be profitable however carry danger, in addition to taking a look at undervalued property, a supply with data of Kingdom’s enterprise mentioned in June.

Saudi Arabia and Russia lead the OPEC+ group, an alliance shaped in 2017 between the Group of the Petroleum Exporting International locations (OPEC) and allied producers.

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