Russia Turns to the UAE for Economic Progress

Russia is looking to establish a stronger business relationship with the United Arab Emirates in order to get an economic boost. Russian President Vladimir Putin seeks to save his economy from sanctions imposed by western powers. Russians are also looking to the rest of the Gulf region as a lucrative investment source.

Russia is looking to establish a stronger business relationship with the United Arab Emirates in order to get an economic boost. Russian President Vladimir Putin seeks to save his economy from sanctions imposed by western powers. Russians are also looking to the rest of the Gulf region as a lucrative investment source.

The world is seeing Russia going east in the wake of tensions with western powers over the Ukrainian crisis. First, Russia sent ripple waves across the world when authorities there landed a major natural gas deal with the Chinese in 2014. Now Russia is looking to attract more finance from the Middle East, and nations such as the UAE seem interested regardless of geopolitical tensions. President Putin signaled high hopes of establishing a stronger investment relationship with the UAE in the past, and the geopolitical standoff with the West only pushes Russia further east.

Russia Trade Ties Grow Stronger

Russia’s economic relationship to Asia ties into the Eurasian Economic Union, which is comprised of Russia, Belarus, Kazakhstan and Armenia. Russian critics will point to the union as part of Putin’s intention to piece back together the Soviet Union, but the EEU is simply comprised of 190 million people that share similar custom laws, facilitating a free-flow of goods and services on the market. The union means to foster business connectivity between China and Europe through Central Asia, and this trade route gives UAE firms a chance to make sound investments in the region. Russian trade with the UAE is currently worth $2 billion dollars, which is set to grow in the future. Russia exports a variety of goods to the UAE, such as machine equipment, steel, diamonds and gold. In turn, Russia imports certain foods and machines from the Gulf country. The two countries are also partners in regards to space exploration and drone manufacturing.

Geopolitics May Get in the Way of Economics

The Russians have their eyes set on the UAE and the Gulf region as a whole, but it remains a question as to whether geopolitics will intertwine with economic policy. Russia is geopolitically and economically at odds with Saudi Arabia and it is no secret that the Saudis wish to see the current Syrian regime, an ally of Russia, overthrown. The Saudis have also been trying to corner Russia into withdrawing support of the Syrian government by driving down oil prices on the market. However, the UAE is interested in bolstering ties with Russia, especially since the Russians can help the sheiks further diversify the economy and recover from the shock of low oil prices. The Russians must also strengthen business alliances wherever they can as the West becomes increasingly hostile to Russian interests.