Russian Commodities Firms Look Beyond the #UAE to #Oman For Trade - Bloomberg

Russian Commodities Firms Look Beyond the UAE to Oman For Trade - Bloomberg

When Russian President Vladimir Putin takes the stage at his annual forum in St. Petersburg this week, his country’s business ties with a lower-key Gulf state will be on full display.

Oman, a sultanate that’s home to some 5 million people, was awarded the honorary status of guest nation for this year’s summit. The distinction underscores a deepening economic relationship since Russia’s invasion of Ukraine in February 2022.

While the US has sanctions on Russia, countries including the United Arab Emirates and Oman haven’t imposed their own. Oman has sometimes been dubbed the Switzerland of the Middle East for its helpful role on sensitive diplomatic disputes — including talks that led to the 2015 Iran nuclear deal.

The increasing Russian-Omani business relations now align with Muscat’s longstanding neutrality. They also come at a time when the allure of places like Dubai — one of the early magnets for Russians after the invasion — has been dimming for many.

Some Russian businesses have considered new jurisdictions as the cost of living in glitzy Dubai has surged and its banks have been facing greater pressure to get stricter in enforcing US sanctions. Meanwhile, Oman’s crude reserves also pale in comparison to many Middle Eastern states and it can benefit from external investments.