Commodity turnaround: Russia and Oman set their sights on partnership in the extraction of raw materials

Oman and Russia are interested in cooperation in the field of technology and mining of mineral resources. At the same time, the countries are raising the level of economic cooperation, the Ministry of Information of the Sultanate told Izvestia. According to the ministry, bilateral trade already exceeds $345 million, and negotiations with Russian companies and the Moscow Chamber of Commerce and Industry demonstrate mutual interest in projects in the field of mining, logistics and "green" development. Active cooperation with Oman also opens the way for Russia to develop broader ties with the countries of the Gulf Cooperation Council (GCC), which have significant investment and technological potential.

Trade turnover between Russia and Oman exceeded $345 million

Oman and Russia are moving to a new level of economic cooperation, the sultanate's information ministry told Izvestia. According to its representatives, the country wants to expand access to international markets, diversify non-primary exports and create competitive conditions for foreign investors.

— The growing trade and investment ties underline the Sultanate's desire to strengthen its global economic presence. The volume of bilateral trade [with Russia] has already exceeded $345 million, which reflects not only the scale of existing trade, but also the potential for deeper cooperation in various sectors," the ministry noted.

Photo: IZVESTIA/Anna Selina

By the end of 2024, the trade turnover between the two countries amounted to $314 million. The largest increase occurred in the export of Russian grain: supplies of wheat and meslin (a mixture of wheat and rye) increased by 52%, barley — by 6.7 times.

The ministry added that the impetus was given by the visit of the delegation of the Oman Chamber of Commerce and Industry to the Russian Federation, which coincided with the Moscow-Oman business forum and the country's participation in the BRICS Urban Future Forum. The negotiations opened up new opportunities for cooperation in the fields of high technology, urban planning and logistics, laying the foundation for a long-term partnership.

"Negotiations with Russian companies and the Moscow Chamber of Commerce and Industry have shown mutual interest in creating strategic partnerships in areas such as technology, mining, logistics and green development," the Information Ministry said.

Oman's Minister of Housing and Urban Planning Khalfan bin Saeed Al-Shuaili earlier told Izvestia that there is "a real desire for investment between the countries in the sectors of sustainable development, tourism, technology and industry." He expressed hope that the trade turnover will continue to grow in the coming years.

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In April, Vladimir Putin and Sultan Haysam bin Tarek Al Said held a historic meeting, the first in 40 years since the establishment of diplomatic relations. The parties identified energy, agriculture and trade among the priority areas of cooperation, and also signed a series of agreements, including the mutual abolition of the visa regime and the establishment of an intergovernmental commission on trade.

Russian President Vladimir Putin and Sultan of Oman Haytham bin Tarek Al Said at the signing ceremony following the meeting in Moscow

Photo: RIA Novosti/Kristina Kormilitsyna

Oman is actively developing port facilities, striving to become a logistics hub in the region. The ports of Duqm and Salalah have already established themselves as promising hubs for international trade. The sultanate's Foreign Minister, Badr bin Hamad bin Hamoud al-Busaidi, said that Muscat is considering the possibility of connecting to the North—South international transport corridor.

Photo: IZVESTIA/Eduard Kornienko

The parties are eyeing joint work in the field of geological exploration, assessment and forecasting of mineral reserves, as well as in the field of environmentally responsible subsurface use.

Oman has a rich mineral base, from raw materials for the production of silicon to deposits of basalt and ore rocks. All this opens up broad prospects for cooperation with Russia, especially in terms of refining and mining technologies. There is also interest in cooperation in the development of basalt and ore deposits," said Omani political scientist Khamis Al-Qutaiti in an interview with Izvestia.

According to him, energy technologies also remain a promising area, including joint projects on the development of renewable energy sources and carbon management.

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Muscat is actively investing in solar and wind power plants, where Russian engineering companies can offer expertise in grid design and integration.

The intensification of Russian-Omani cooperation will help to develop Moscow's relations with the countries of the entire region. Over the past decade, Russia has significantly expanded trade and economic relations with the Gulf Arab Cooperation Council (GCC). Since the 2010s, the parties have been holding regular meetings of the strategic dialogue.

Against the background of sanctions against the Russian energy sector, Moscow's interest in the Gulf countries is natural: enormous financial resources and high-tech logistics solutions in demand in the oil and gas industry are concentrated here.

Photo: IZVESTIA/Konstantin Kokoshkin

For example, the UAE's experience in digitalization and smart cities, as well as Saudi programs for the development of hydrogen energy and the extraction of critical minerals, open up great opportunities for Russia.

Today, private companies from Russia in the fields of energy, construction, agriculture, tourism and services operate in the markets of the Persian Gulf countries, and their number continues to grow. Russian enterprises participate in infrastructure and engineering projects, supply equipment and technologies, and develop exports of food and agricultural products, thereby strengthening economic ties with the states of the region.