Saudi Kingdom Holding invests $500 million in Russian oil companies

Investing in Gazprom (GZPFI)Rosneft and Lukoil, the Kingdom was likely looking for undervalued assets, but its move was prompted by the fact that many Western countries imposed sanctions on Russian energy companies and their executives after Russia’s invasion of Ukraine on February 24.

Saudi Arabia and other Gulf states have so far tried to maintain what they call a neutral stance on the war in Ukraine, frustrating some Western officials who have sought to isolate Russia over the invasion.

The Kingdom in February invested 1.37 billion rials ($365 million) and 196 million rials ($52 million) in the global depositary receipts of Gazprom and Rosneft, respectively.

The firm also invested 410 million rials ($109 million) in Lukoil’s U.S. depositary receipts between February and March, documents released Sunday as part of a lengthy recent investment disclosure showed. This did not provide any basis for any specific investment.

Kingdom Holding, 16.9% owned by Saudi Arabia’s sovereign wealth fund chaired by Crown Prince Mohammed bin Salman, has not previously disclosed details of its investment.

Prince Al-Waleed bin Talal rose to international prominence after he made a major successful bet on Citygroup (FROM) in the 1990s and he was one of the first investors in Apple (AAPL).
The prince has also made hundreds of millions of dollars by investing in companies such as Uber (uber) as well as Twitter (TVTR).

Alwaleed’s investment style is focused on new opportunities that can be profitable but risky, as well as undervalued assets, a source familiar with the Kingdom business said in June.

Saudi Arabia and Russia lead the OPEC+ group, an alliance formed in 2017 between the Organization of the Petroleum Exporting Countries (OPEC) and allied producers.

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