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.
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.
Subscribe to receive exclusive insights and analysis on Middle East.
Russian logistics operators and shipping companies have found themselves in demand in Saudi Arabia due to their expertise in developing new supply chain routes in the wake of sanctions and handling regional conflicts. With the Strait of Hormuz remaining closed for Saudi exports, Russian and Saudi logistics professionals have been working the problem and coming up with creative solutions. It is a trend likely to impact future supply chains in the Middle East, Eurasia, Southeast Asia and Africa.
The Russian Ministry of Emergency Situations has sent a train consisting of 31 wagons with humanitarian aid for Iran comprising over 300 tonnes of medicines and medical supplies. Thus far, over 1,407 Iranian civilians, and over 210 children have been killed in US and Israeli airstrikes on the country.
Russia’s Red Wings airline is to start direct flights from Krasnodar to Bodrum in Turkiye during the period June-October to cater for the summer holiday season. Krasnodar airport was closed for three years between 2022-25 due to the special operation in nearby Ukraine. Russian tourists have become a sought-after commodity as they have higher levels of disposable income than Europeans and spend more at their destinations.
The crisis in the Middle East is drastically affecting Russian oil prices and creating fluctuations in the value of the Ruble. We examine the implications, how the Russian government is benefiting, while at the same time being cautious and managing the situation. We provide analysis of how these issues can be expected to impact the Russian economy and the Russian domestic consumer over the course of this year.
Russia’s RZD Logistics are reporting an easing of rail transport problems along the INSTC and are saying that trains servicing the routes via Iran are now being booked for the March and April.
The Russian domestic consumer market can expect supply chain difficulties due to the United States and Israeli attacks on Iran. We explain the developing logistics bottlenecks, which products are likely to be impacted and expected price rises.
Русский
