Putin, MBZ meet in St. Petersburg, vow to boost Russia-UAE ties

DUBAI — Russian President Vladimir Putin met with United Arab Emirates President Sheikh Mohammed bin Zayed at the St. Petersburg International Economic Forum on Friday, and discussed strategic partnerships in addition to stabilizing the Ukraine crisis. 

The two leaders expressed their commitment to ongoing bilateral ties, according to the state-owned Emirates News Agency (WAM).  

"I am pleased to be here today with you, your Excellency, and we wish to build on this relationship and we put our trust in you to do so," Sheikh Mohammed told Putin.

The UAE president was accompanied by a delegation that included climate envoy and the head of the COP28 UN climate conference CEO Sultan Al Jaber, in addition to other members. 

What happened: Sheikh Mohammed, better known as MBZ, was a main guest at the forum and held talks with his Russian counterpart at the event sidelines on Friday. He called for de-escalation of the Russia-Ukraine war and the need for a political resolution during the talks. 

“His Highness also stressed the importance of accelerating efforts to mitigate the humanitarian repercussions of the crisis and supporting prisoner-exchange initiatives on both sides,” reported WAM. 

Why it matters: The UAE president was considered the most prominent guest at the economic event in St. Petersburg, which used to attract prominent politicians and investors from the United States and Europe, according to Bloomberg. Putin's invasion of Ukraine in February of 2022 stymied foreign investments. 

While at the event, MBZ appeared however open to increasing that cooperation. “Cooperation, especially in the private sector, plays a big role in the development of our bilateral ties” and recognized the large increase of Russian tourists in the UAE. 

The Gulf Cooperation Council (GCC) countries, including the UAE, took a neutral stance amid Western sanctions placed on Russia for its war on Ukraine. 

The region’s mostly impartial position gave it political and economic opportunities as a refuge for Russian wealth. It allowed the UAE and Saudi Arabia to take the role of negotiator between the United States and Russia for the exchange of two prisoners in December of 2022. 

The UAE has also had a reciprocal visa-free travel agreement with Russia since 2019, which allows valid passport holders who have no intention to work or study in the UAE or Russia the right to stay in each country for a period of 90 days visa-free.

The UAE Minister of State for Foreign Trade, Thani bin Ahmed Al Zeyoudi, said that UAE-Russia non-oil trade increased 95% in 2022, while speaking at a virtual event hosted by the Washington-based Atlantic Council in April. He added that wealthy Russians sought to liquidate billions of dollars through UAE-based cryptocurrency exchanges, identifying the Emirates as a “favorable destination” for billionaires globally. 

The United States and European countries have called out the Gulf state for being a safe haven for evading Western sanctions and money laundering. In April, the US Treasury Department issued sanctions against two UAE-based firms for allegedly assisting the Russian invasion of Ukraine. 

Earlier in March, the Central Bank of the UAE canceled Russia's MTS Bank Abu Dhabi license citing “sanctions risk” after six months of issuing the license.