Energy Putin reaches out to his partners in the Middle East as he waits for the oil price to 'resurrect'

Vladimir Putin, wanted in the West, aims to strengthen ties with the Middle East in an unusual visit abroad. The Russian leader visited Saudi Arabia and the United Arab Emirates this Wednesday on a ‘lightning tour’, trying to open a gap between the Gulf powers and the United States.

The Russian president, who travels outside the country less and less, landed in Saudi Arabia in the afternoon to meet with Crown Prince Mohammed bin Salman and talk about oil, but also about Gaza and Ukraine. “Nothing can prevent the development of our friendly relations. The next summit must take place in Moscow,” Putin said, reiterating an old aspiration that he has had to postpone several times.

The meeting took place after a drop in oil prices despite the commitment to reduce production reached by OPEC, which brings together the Organization of the Petroleum Exporting Countries (OPEC) and its allies led by Russia.

The price of Brent oil on the London Stock Exchange fell below $76 per barrel for the first time since July. Both Russia, whose budget depends largely on oil, and Saudi Arabia need somewhat higher crude oil prices. The remaining question for both is how much of the reduction each should take to keep prices high and how to verify it. OPEC delayed a meeting last month precisely because of disagreements over each other’s production levels. In 2020, OPEC agreed to record cuts of almost 10% of global demand, but only after some disagreements precisely over how much each country must give up. Riyadh wants more guarantees that Moscow will comply.

Russia and Saudi Arabia together handle a fifth of the oil extracted each day. Both leaders have forged close relationships: this ‘chemistry’ has been helped by the fact that on different occasions they have been condemned as tyrants by the West. The United States supplies Riyadh with most of its weapons, but Mohammed bin Salman has sought to reassert Saudi Arabia as a regional power less obedient to Washington. This scenario pleases Putin, who wants to reinforce this situation with business.

The event has special importance for Moscow at a time when Putin’s regime is looking for ways to combat the isolation it suffers in the West. That is why Putin’s delegation included senior officials from the oil and finance sector, but also diplomats, experts in aerospace technology and also nuclear energy. The weight of the energy business lost in Europe is difficult to equal, but Moscow replicates the approach of searching for new partners not only in the Middle East, but in Africa and Latin America.

During Putin’s stopover in Abu Dhabi, the leader of the United Arab Emirates, Sheikh Mohammed Bin Zayed Al Nahyan, gave a spectacular welcome to his “dear friend”, with several United Arab Emirates planes flying close to Putin’s entourage and leaving in the sky the colors of the Russian flag. “Our relations, largely thanks to your position, have reached an unprecedented level,” Putin stressed, “the United Arab Emirates is Russia’s main trading partner in the Arab world.”

Collaboration with the United Arab Emirates is a key way for Russia to avoid sanctions. But also a key player in the oil market. Putin recalled that Russia and the United Arab Emirates cooperate as part of OPEC, whose members extract more than 40% of the world’s oil. The trip, just days after the key OPEC meeting was delayed, had all the signs of having been hastily organized and was not announced until this week.

This contact with leaders in the area will have a second part. The Russian president will receive his Iranian counterpart, Ebrahim Raisi, tomorrow Thursday in Moscow. Along with Saudi Arabia and the United Arab Emirates, Iran is also one of the international actors to negotiate a solution to the war between Israel and Hamas. Putin has sought to boost Russia’s role in that region and challenge Washington. Although he has recently leaned more toward the Palestinian side — Hamas has good relations with Russia and frequently sends delegations to Moscow — Putin believes he can be a mediator, thanks to his friendly ties with both Israel and the Palestinians. The Gaza crisis represents an opportunity for Russia to re-enter global politics.