The Growing Trade Ties between Russia and Saudi Arabia

In the ever-evolving landscape of global economics, trade relations between nations play a significant role in shaping the fortunes of countries and impacting international stability. Two nations that have recently been making headlines due to their burgeoning trade ties are Russia and Saudi Arabia. While historically known for their differences, these two influential countries have been working together to strengthen their economic bonds, leading to a remarkable transformation in their relationship. In this blog post, we will delve into the evolving trade ties between Russia and Saudi Arabia, and examine the key factors that are driving this partnership as well as the potential implications in the global arena.

A Historical Overview of Russia and Saudi Arabia's Trade Ties

Before we dive into the current state of their trade relations, it's essential to understand the historical context that set the stage for Russia and Saudi Arabia's growing partnership.

Historically, Russia and Saudi Arabia had limited economic ties. The Cold War era, in particular, saw the two nations on opposite sides of the ideological spectrum, with Russia joining the Eastern Bloc as the leading nation and Saudi Arabia aligned with the Western world, led by the United States. However, the dawn of the 21st century brought about a shift in global dynamics, prompting both countries to reassess their foreign policy priorities.

Trade Partnership between Russia and Saudi Arabia

The trade partnership between Russia and Saudi Arabia is significant for both countries. For Russia, it provides a new market for its energy exports and a potential source of investment. For Saudi Arabia, it provides a new source of food and fertilizer. The trade partnership is also seen as a way to strengthen relations between the two countries and promote stability in the Middle East.

Here are some statistics on the trade partnership between Russia and Saudi Arabia in 2022-23:

• The total trade volume between the two countries in 2022-23 was around $2.5 billion, up from $2.2 billion in 2021.
• As per Russia Trade Data, Russia is expected to export goods worth $1.8 billion to Saudi Arabia in 2022-23, while Saudi Arabia is expected to export goods worth $700 million to Russia.
• As per Saudi Arabia trade data, the main commodities exported by Russia to Saudi Arabia are oil, wheat, and fertilizers. The main commodities exported by Saudi Arabia to Russia are gold, aluminum, and plastics.
• The trade between Russia and Saudi Arabia is expected to grow in the coming years as the two countries continue to cooperate on energy and security issues.

The trade ties between Russia and Saudi Arabia have been growing in recent years, driven by a number of factors.

1. The decline in oil prices: Both Russia and Saudi Arabia are major oil producers, and the decline in oil prices has hurt their economies. This has led them to look for new ways to diversify their economies and reduce their dependence on oil exports.
2. The OPEC+ agreement: Russia and Saudi Arabia are both members of the OPEC+ agreement, which is a group of oil-producing countries that work together to manage the global oil market. This agreement has brought Russia and Saudi Arabia closer and has helped to stabilize the global oil market.
3. The shared interest in security in the Middle East: Russia and Saudi Arabia share a common interest in security in the Middle East. Both countries are concerned about the threat posed by terrorism and Iran, and they have cooperated on issues such as counterterrorism and counter-proliferation.

As a result of these factors, trade ties between Russia and Saudi Arabia have grown significantly in recent years. Based on Export Import Data, the total trade volume between the two countries was $2.2 billion in 2021, up from $1.9 billion in 2020. Russia is now Saudi Arabia's third-largest trading partner, after China and the United States.

What does Saudi Arabia Import from Russia?

Following the European Union's import restriction on Russian goods, Saudi Arabia increased its imports of fuel oil this year. Dubai trade data showed that Saudi Arabia imported 2.86 million metric tons of Russian fuel oil in the first half of 2023, which is more than double the 1.63 million metric tons imported for the year 2022.

Saudi Arabia imports a variety of goods from Russia, including:

• Oil and petroleum products: Russia is a major oil producer, and Saudi Arabia is a major oil importer. In 2022, Russia exported an estimated $1.8 billion worth of oil and petroleum products to Saudi Arabia, as per Russia Trade Data.
• Wheat: Russia is a major wheat exporter, and Saudi Arabia is a major wheat importer. In 2022, Russia exported an estimated $316 million worth of wheat to Saudi Arabia, as per Saudi trade data.
• Barley: Russia is also a major barley exporter, and Saudi Arabia is a major barley importer. In 2022, Russia exported an estimated $256 million worth of barley to Saudi Arabia.
• Fertilizers: Russia is a major fertilizer exporter, and Saudi Arabia is a major fertilizer importer. In 2022, Russia exported an estimated $143 million worth of fertilizers to Saudi Arabia.
• Other commodities: Saudi Arabia also imports other commodities from Russia, such as metals, plastics, and machinery.

Here is a chart showing the statistics of imports from Russia to Saudi Arabia in 2022:

As you can see, oil and petroleum products are the most imported commodities from Russia to Saudi Arabia, followed by wheat, barley, and fertilizers. Based on saudi trade data, the total value of imports from Russia to Saudi Arabia in 2022 was $2.7 billion.

Who is Saudi Arabia's largest export partner?

China has replaced the United States and the European Union as Saudi Arabia's main trading partners, with imports from and exports to Saudi Arabia now surpassing trade between the two major oil-producing nations.
Back in 2001, Saudi Arabia’s trade with China was a mere fraction—just one-tenth—of its combined trade with the EU and United States. Although the aggregate value of trade was modest at the time, it has since been steadily rising practically every year.

2011 marked the first year when China's bilateral trade value with Saudi Arabia topped that of the United States. Then, by 2018, China and Saudi Arabia's commerce exceeded that of the Middle East nation with the entire EU.

Who are Russia's top 5 trading partners?

According to the Russia Trade Data, Russia's top 5 trading partners in 2022-2023 are:

• China (trade volume of $140.7 billion)
• Turkey (trade volume of $68.6 billion)
• Netherlands (trade volume of $42.1 billion)
• Germany (trade volume of $29.6 billion)
• Belarus (trade volume of $26.4 billion)

These five countries accounted for a total of 47% of Russia's trade in 2022–2023, as per Trade data for Russia. The trade relationship between Russia and its top five trading partners is likely to continue to be important in the coming years. However, the political tensions between Russia and the West could have a negative impact on the trade relationship.

Major Challenges Faced by Russia and Saudi Arabia

The growing trade ties between Russia and Saudi Arabia are not without challenges. One challenge is the ongoing conflict in Syria. Russia is a key ally of the Syrian government, while Saudi Arabia is a leading supporter of the opposition. This conflict has created tensions between the two countries and made it difficult for them to cooperate on other issues.
Another challenge is the potential for competition between Russia and Saudi Arabia in the global energy market. Both countries are major oil producers, and they are both looking to expand their market share. This competition could lead to lower oil prices, which could hurt the economies of both countries.

Despite these challenges, the growing trade ties between Russia and Saudi Arabia are a positive development for both countries. By working together, Russia and Saudi Arabia can strengthen their economies, improve energy security, and play a more important role in the global economy.

How to Find Russia and Saudi Arabia Trade Data?

Finding trade data for Russia and Saudi Arabia can be a challenging task for businesses looking to expand their reach in the global market. One of the Best Export Import Data websites to find export import data is EximPedia.app. We provide import export data, HS codes, and other market information, and it is an excellent platform for businesses to analyze and search for their products and services among an international audience and meet potential importers. Also, we have a comprehensive export and import data bank from around the world and allow businesses to connect with potential buyers and suppliers
In conclusion, the growing trade ties between Russia and Saudi Arabia are a positive development for both countries. By working together, Russia and Saudi Arabia can strengthen their economies, improve energy security, and play a more important role in the global economy. 

The growing cooperation between Russia and Saudi Arabia is also likely to have a significant impact on the global energy market. If you have any queries regarding the Russia Trade data or Dubai trade data, you can connect directly with EximPedia’s business professionals; they will help you expand your business globally.