Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman Al Saud discussed potential collaboration between Saudi Arabia and the BRICS on Friday. The Kremlin press service details that Putin and the Saudi Crown Prince “expressed satisfaction with the level of coordination at OPEC Plus aimed at ensuring the global oil market stability.”
According to a statement released by the Kremlin press service after the call, Russian news outlet Tass reported that Putin and Crown Prince and Prime Minister Mohammed bin Salman Al Saud of Saudi Arabia discussed several important bilateral issues during the phone call on Friday. The statement details that Russia and Saudi Arabia are satisfied with the level of coordination in the OPEC+ framework, stating: The parties expressed satisfaction with the level of coordination at OPEC Plus aimed at ensuring the global oil market stability.
The Organization of the Petroleum Exporting Countries Plus (OPEC+) members, which include Saudi Arabia and Russia, recently agreed to cut crude oil output. OPEC+ is a group of 23 oil-exporting countries that meet regularly to decide how much crude oil to sell on the world market.
The Kremlin press service further explains that the discussion between the Russian president and the Saudi Crown Prince included a range of key topics on their bilateral agenda, with a particular emphasis on strengthening their mutually advantageous connections in areas such as trade, economic cooperation, investment, and energy. The statement adds: Prospects for cooperation between Saudi Arabia and BRICS were also considered.
Saudi Arabia has expressed interest in joining the BRICS bloc which comprises Brazil, Russia, India, China, and South Africa. The BRICS nations have been ramping up efforts to reduce their dependence on the U.S. dollar. They are also reportedly working to create a new type of currency.
Moreover, the BRICS countries are focusing on expanding their international influence to counter Western countries’ “destructive actions,” a Russian official recently said. Former Treasury Secretary Lawrence Summers has expressed concerns that a rising number of countries, including China, Russia, and the Middle East, are aligning themselves and gaining global influence, which is a challenge for the U.S.
Fitch Solutions’ analyst said BRICS’ de-dollarization, China, and cryptocurrency threaten the U.S. dollar’s dominance.
The potential collaboration between Saudi Arabia and the BRICS could result in a significant shift in the global balance of power, particularly if the BRICS nations succeed in reducing their dependence on the U.S. dollar. It could also lead to increased economic cooperation and investment between the two parties.
The BRICS nations have been working to strengthen their economic ties in recent years. In 2018, they signed a memorandum of understanding to establish a joint payment system that would allow them to bypass the U.S. dollar. The move was seen as a significant step towards reducing their dependence on the U.S. dollar and increasing their economic independence.
The collaboration between Saudi Arabia and the BRICS could also have significant implications for the global energy market. Saudi Arabia is one of the world’s largest oil producers, and its cooperation with the BRICS could result in increased investment in renewable energy projects and a shift away from fossil fuels.
Overall, the potential collaboration between Saudi Arabia and the BRICS is an important development that could have significant implications for the global balance of power, the energy market, and the future of the U.S. dollar. It is a development that should be closely watched by investors, policymakers, and anyone interested in the future of the global economy.