Turnover hit all-time highs last year and continues to grow despite Western sanctions on Moscow
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Economic cooperation between Russia and the United Arab Emirates has been on the rise despite Ukraine-related Western sanctions on Moscow, Bloomberg reported on Thursday.
The outlet cited the Carnegie Endowment for International Peace as saying that Russian oil and precious metals flow into the emirates have recently soared while microchips and civilian drones were being supplied to Moscow.
The report also quoted Goldman Sachs’ Jared Cohen as stating that the UAE is profiting from its position as a “geopolitical swing state.”
Apart from soaring exports, the UAE has also been gaining popularity as a financial haven for wealthy Russians. The Gulf state hosts more than 4,000 Russian companies and is currently in talks with Moscow over a free-trade agreement between the UAE and the Russia-led Eurasian Economic Union.
The UAE is poised to attract the biggest share of private wealth this year as Russian capital seeks a new home, according to a recent report published by Henley & Partners.
Russian Deputy Foreign Minister Mikhail Bogdanov has stated that the UAE is on course to become one of Russia’s 20 top economic partners due to the rapid growth of trade and cooperation in recent months. The Gulf country has become a key destination for Russian gold since Western governments closed their markets as part of their sanctions on Moscow.
READ MORE: Gulf nation snaps up Russian gold – Reuters
The UAE has been largely neutral in the Ukraine conflict. It has refrained from placing sanctions on Russia but has kept close ties with its Western partners, with which it shares historically close bonds. Meanwhile, the US and its allies have been pressuring Abu Dhabi to curb trade with Moscow, which is seen as an impediment to Washington’s plans to isolate Russia.
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