Putin meets with Russia's key partners within OPEC+

December 6 saw Russian President Vladimir Putin pay a blitz visit to two successive Persian Gulf countries for talks with the United Arab Emirates’ President Mohammed bin Zayed Al Nahyan and Saudi Crown Prince Mohammed bin Salman Al Saud, who is also Chairman of his country’s Council of Ministers. A day earlier, Presidential Aide for International Affairs Yuri Ushakov called Putin's visits a "signal to the international community."

The trip took place amid major events unfolding in the Middle East.

The Palestinian-Israeli conflict in the Gaza Strip returned to a hot phase after the ceasefire was broken on December 1, and fighting resumed in the enclave.

An essential international event was also launched in the UAE in late November as Dubai hosts the 28th conference of the UN Climate Change Conference (COP-28). Vladimir Putin has failed not attend, which is generally understandable — the schedule of his visit was rather tight, with top priority given to negotiations with the Emirate’s leader on development prospects for economic and energy cooperation, especially along the oil track. Similar issues were discussed with the Crown Prince of Saudi Arabia.

The present-day global oil market situation is not the easiest for exporters: during the trading session of December 6, the price of a Brent barrel fell to $75. Therefore, the OPEC+ camp has to maintain stock quotes by permanently limiting its output. Saudi Arabia, the United Arab Emirates and Russia are all members of the alliance, which is going to comprise 24 states starting 2024 (Brazil will become a full-fledged member on January 1). November 30 witnessed a number of OPEC+ countries agree to further reduce production in the first quarter of 2024, offsetting the potential risk of oil price decline over the seasonal slump in demand.

Vladimir Putin's visit to the UAE and Saudi Arabia has been an important step in the overall strategy of strengthening Russia's partnership with key oil producers. Vladimir Putin's previous visits to these two countries date back to 2019. Since then, the international political environment has undergone major transformation. But Moscow has preserved its partnerships with both Riyadh and Abu Dhabi, despite Washington's attempts to destroy those.

Then there are facts reflecting noticeable macroeconomic dynamics here. Thus, Vladimir Putin said that the UAE has become Moscow's key trading partner in the Arab world since the beginning of his special military operation in Ukraine — last year’s turnover amounted to $9 billion, with $8.8 billion in the first nine months of 2023. Also, the president noted joint effort and cooperation of the United Arab Emirates and Russia on various international platforms. "For example, we work together within BRICS and the Shanghai Cooperation Organization, where the Emirates were granted dialogue partner status in May 2023. We are also developing and promoting strategic dialogue between the Russian Federation and the Gulf Cooperation Council”.

During Vladimir Putin's meeting with Saudi Crown Prince Mohammed bin Salman Al Saud, the figures on trade turnover were not publicly announced. The Russian President focused on the sides’ historical partnership, stressing that "over the past seven years, of course, the relationship has acquired such a quality, reached a level that has never been before." This thesis by Putin should be deemed enough to apprehend the vector and depth of his partnership with the Kingdom.

Naturally, Washington was not exactly mad about the Russian leader’s Middle East "blitz tour". The White House has become anxious and is apparently plotting new sanctions against our country’s fuel and energy complex.

Meanwhile, Russia has been earning a lot more on oil trade than prior to the price cap introduced by G7 and the European Union. Bloomberg estimates that its October revenues were the highest since May 2022, amounting to $11 billion.