Russia’s trade and investment into the Middle East is rapidly developing, with relations both through the Gulf Cooperation Council and the Arab League all helping boost bilateral trade by 25% during 2025. Partially driven by the developments along the INSTC, and new regional free trade agreements, we provide analysis of the growing Russia-Middle East economic partnership. Discover trade statistics, investment flows from the GCC, and business opportunities for companies in both regions.
The Russian State Duma has approved two bills relating to the UAE-Eurasian Economic Union Free Trade Agreement, which will reduce or eliminate duties on about 85% of the product range of mutual trade between the EAEU and the UAE, and setting the stage for its entering into force later this year.
Russia’s FESCO shipping has added another route to its Turkish operations, introducing intermodal container shipments between Ankara and Novorossiysk via the port of Gebze as part of expanding its geographic presence to help boost bilateral trade.
Rosatom, currently developing Turkiye’s Akkuyu NPP, has stated that they expect dividends from electricity generation by the plant to commence from 2035 and for the project development costs to have been fully recovered by 2039. Rosatom is the 100% owner of the NPP, which is Turkiye’s first, generating about 10% of the countries electricity needs.
Russia’s TVEL, a subsidiary of Rosatom, has begun delivering nuclear fuel to China’s Xudabao Nuclear Power Plant in Liaoning Province, while also starting work at China’s Tianwan Nuclear Power Plant in China’s Jiangsu Province. Similar operations are expected to take place this year in Bangladesh and Turkiye.
Russia and Pakistan have commenced discussions concerning a Pakistan-Eurasian Economic Union Free Trade Agreement. Pakistan has an economy worth over US$2 trillion and a consumer market of over 250 million people. Moscow see Pakistan as a promising partner in the region with significant potential for growth.
Subscribe to receive exclusive insights and analysis on Middle East.
Russia’s Foreign Minister, Sergey Lavrov, has met with the Ambassadors of all the 57 Organisation of Islamic Cooperation (OIC) members, stressing the need for further cooperation and trade development. The OIC has a combined population of about 25% of the entire world’s people.
Russia and Saudi Arabia are to start their mutual visa-free programme from May 11. There are about 20 million Muslims in Russia, in regions such as Tatarstan, Bashkortostan, Dagestan, Chechnya, Ingushetia, Kabardino-Balkaria, and Karachay-Cherkessia. The annual Haj pilgrimage to Mecca runs from May 24 to Friday May 29.
Sri Lanka has begun purchasing oil from Russia after supplies from its normal Middle East suppliers were disrupted a month ago. The price of fuel has rocketed and shortages have been affecting many aspects of local life and services. The first shipments are due to arrive at the end of this month.
Russia has stepped up diplomatic and energy supply chain developments this past month with visits to India, Bangladesh and Sri Lanka, while Pakistan and Afghanistan, both bordering Iran, are also developing as key links in new emerging South Asian oil and gas infrastructure and architecture. We examine what is happening in a region that Russia is almost right in the centre of as regards energy security and future supplies.
Russia’s FESCO Transportation Group and the UAE’s DP World are creating a logistics and shipping alliance that will dwarf all the largest global operators such as Maersk and will develop both the Northern Sea Route as well as look at further developing Middle East-Asia-Central Asia-Russia trade dynamics. The move comes as sanctions and conflicts disrupt traditional routes and will secure Eurasian trade in the longer term.
Iran has stated it will only allow ships from Russia, China, India, Pakistan and Iraq through the Strait of Hormuz. We look at the wider implications as the conflict spreads beyond military force and is now being impacted by anti-conflict Western financiers with specific implications for Europe, Asia and the United States. Western politicians are no longer being supported by their own backers.
Русский
