Why Saudi Arabia became venue for war-ending talks
The US delegation to Saudi Arabia (photo: Getty Images)
Tomorrow, March 11, a new round of high-level US-Ukraine negotiations will take place in Saudi Arabia. Previously, the kingdom has also hosted delegations from the US and Russia.
RBC-Ukraine explains why Saudi Arabia has become the platform for high-level talks involving the US, Ukraine, and Russia.
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Saudi Arabia is one of the most influential countries in the Middle East and the Muslim world. It is a member of the G20, a group of the world's largest economies. The primary source of its wealth is oil, as the country holds some of the world’s largest oil reserves. Notably, its extraction costs are among the lowest globally.
The kingdom is home to two of the largest shrines of Islam, the cities of Mecca and Medina. Because of this, the country positions itself as the leader of the Ummah (the global Muslim community). Additionally, Saudi Arabia uses its oil revenues to finance Islamist movements across the Middle East and beyond, including in Muslim-populated regions of Russia and Europe.
Alongside its regional and religious influence, the kingdom maintains constructive relations with the US, Ukraine, and Russia simultaneously.
Saudi Arabia and the US
The Saudi-US alliance began forming in the 1930s, when American companies, primarily Standard Oil, gained access to Saudi oil fields. In 1945, Franklin Roosevelt and Abdulaziz Ibn Saud reached an informal agreement: the US would gain access to Saudi oil, while the kingdom would receive American military protection and economic support.
In the 1970s, the concept of petrodollars emerged - Saudi Arabia started selling oil exclusively in US dollars and reinvesting a portion of its revenues into American assets. This practice has contributed to maintaining the US dollar as the world's reserve currency.
During Joe Biden’s presidency, US-Saudi relations cooled. Biden restricted arms sales, pressuring Saudi Arabia to end its military campaign against Houthi rebels in Yemen. He also had criticisms of human rights in the kingdom.
However, with Donald Trump’s return, relations between the two countries are improving again. Saudi Arabia has already announced a $600 billion investment in the US over the next four years. In return, Riyadh seeks the unblocking of arms contracts and access to nuclear technology. Trump has also expressed interest in Saudi Arabia helping lower global oil prices as a means of pressuring Russia.
Saudi Arabia and Ukraine
Saudi Arabia views Ukraine as a key partner in the agriculture sector, aiming to establish reliable food supply chains. Before 2022, Saudi businesses planned significant investments in Ukraine's agricultural sector. For Ukraine, Saudi Arabia represents a potential source of investment and a market for its goods.
The relationship between Ukraine and Saudi Arabia is pragmatic. Since the start of Russia's full-scale invasion, Saudi Arabia has maintained a position of "active neutrality." The kingdom has not joined sanctions against Russia but has acted as a mediator in humanitarian issues. This includes facilitating prisoner exchanges between Ukraine and Russia.
In 2023, Jeddah hosted international negotiations involving over 40 countries, as part of preparations for the Peace Summit.
Saudi Arabia and Russia
Riyadh has multifaceted and at times contradictory relations with Moscow. On one hand, both countries cooperate within the framework of the oil-exporting countries’ organization, OPEC+. Since relations between Saudi Arabia and the US had remained tense until recently, the kingdom did not comply with President Biden's demand to increase oil production and lower prices. Instead, the country coordinated its stance with Russia.
On the other hand, the interests of Saudi Arabia and Russia in several countries contradict each other. In Syria, Saudi Arabia supported anti-government groups, mostly Salafist. Meanwhile, Russia was on the side of the Assad regime. The positions of the two countries also differ on Iran. For Saudi Arabia, Iran is one of the main regional adversaries, whose proxy forces have repeatedly attacked the kingdom. For Russia, however, Iran is a strategic ally. If Tehran gains access to Russian military technology, it could pose additional risks to Riyadh.
Despite these nuances, Saudi Arabia’s involvement as a venue for negotiations still offers more advantages than disadvantages. One key reason is that the kingdom has not attempted to use its own leverage to pressure the negotiating parties. In any case, the country’s leadership is highly interested in hosting such negotiations, even purely for image reasons (as the oil monarchies of the Middle East pay great attention to their image).
Earlier RBC-Ukraine reported that Donald Trump expects positive results from the negotiations between the US and Ukrainian delegations in Saudi Arabia. According to the US President, the delegations should determine whether Ukraine is ready to make material concessions to Russia to end the war.
