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Russia eyes multi-million-dollar Saudi investment deals, Aramco IPO

Reuters  |  RIYADH 

By El Gamal

RIYADH (Reuters) - is seeking to finalise multi-million-dollar investment deals with in the next three months including partnerships with giant Aramco, Russia's top said on Wednesday.

Russian banks and a Russian-Chinese investment fund are also keen to take part in Aramco's initial public offering (IPO), the of the Russian Direct Investment Fund, Kirill Dmitriev, told reporters, reiterating comments he made last month.

The move is aimed at strengthening between the two major producers.

Dmitriev told last month that there was great interest in the IPO from Russian pension funds and Chinese partners.

Sources told last year that Chinese companies were willing to be cornerstone investors in the IPO, which could become the world's biggest, valuing the firm at up to $2 trillion and raising more than $100 billion.

"There are a number of investors who would like to invest in the IPO, including several banks," Dmitriev said on Wednesday.

"Not only this, we have a Russia-investment fund, and through that Russia-investment fund we see a major interest in the IPO from a number of leading Chinese institutions."

Saudi officials have said the government plans to sell up to 5 percent of shares on one or more foreign exchanges in addition to Riyadh.

"We will see how the IPO process progresses but we see significant interest to invest in the IPO, from Russia, from We believe this is very good for, once again, thinking jointly about oil," he said.

Dmitriev also said the Russian Direct Investment Fund, the and planned to invest in several projects through their joint including in Russia's Eurasia Drilling, a

"We expect to finalise an agreement very shortly to have our with invest in and also provide services to Saudi Aramco," Dmitriev said.

An announcement is expected later on Wednesday on a partnership between and a in Russia, Dmitriev said.

also has significant investments in Saudi Arabia's petrochemicals industry, he said.

Sibur, Russia's largest of petrochemicals, is building a petrochemicals facility in the kingdom.

Russian had said in October the deal would be worth $1.1 billion.

"Sibur, jointly with us, is building a petrochemical facility focused on ... manufacturing, which is really one of the big Russian projects in and underscores the potential for cooperation in petrochemicals," he added.

In October, and announced a $1 billion fund to invest in

Dmitriev also said a global deal between the Organization of the Petroleum Exporting Countries and some non-OPEC producers to cut crude supply was stabilising the market.

and are leading the supply deal, which runs until the end of 2018.

(Reporting by El Gamal; Writing by Maha El Dahan; Editing by Dale Hudson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, February 14 2018. 17:14 IST