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Saudi Arabia, Russia Ties Under Strain Over Oil-Production Cuts
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Saudi Arabia offered to pay for new sports stadiums in Greece and Egypt if they agreed to team up with the oil-rich Gulf heavyweight in a joint bid to host the 2030 football World Cup, POLITICO can reveal.
In exchange, the Saudis would get to stage three-quarters of all the matches, under the proposed deal.
The dramatic offer — likely worth billions of euros in construction costs — was discussed in a private conversation between Mohammed bin Salman, the de facto ruler of Saudi Arabia, and Greek Prime Minister Kyriakos Mitsotakis, in summer 2022, according to a senior official familiar with the matter.
A second senior official with knowledge of private discussions on the bid told POLITICO that Saudi Arabia is prepared to “fully underwrite the costs” of hosting for Greece and Egypt, but 75 percent of the huge 48-team tournament itself would be held in the Gulf state.
It is not clear whether the offer was taken up. But the three countries are now working on a joint proposal to host the 2030 tournament, a move which has triggered a backlash against Greece.
Riyadh’s megabucks offer to Greece, reported here for the first time, will fuel criticism that Saudi Arabia is effectively attempting to use its astronomical wealth to buy the World Cup by creating a trans-continental coalition to cleverly take advantage of the voting system.
In an attempt to persuade the members of football’s world governing body, FIFA, of the virtues of the Saudi-led bid, the proposed tournament would see matches held across three continents, providing geographical balance. A Middle East-only World Cup bid would be unlikely to succeed just eight years after Qatar hosted the tournament in 2022.
The Saudis’ main rivals are a joint Spain, Portugal and Ukraine bid from Europe, and a South American bid from Argentina, Uruguay, Paraguay and Chile.
The decision on who hosts the 2030 World Cup comes down to a public vote of the entire FIFA Congress, made up of more than 200 member associations from around the globe. If African countries, attracted by Egypt’s presence and Saudi investment around Africa, rally behind the bid, and Asian nations do the same, while Greece siphons off some European votes, the Saudi-led proposal will stand a strong chance of winning.
POLITICO approached all three governments for comment. The Greek and Saudi governments declined to comment and the Egyptian government did not respond to POLITICO’s requests. FIFA also declined to comment.
Holding the World Cup would be the culmination of Saudi Arabia’s ambitious strategy to dominate major sporting events. Successes include winning the rights to host world championship boxing bouts, European football and Formula One motor races, while creating its own rebel golf tour. Saudi Arabia’s Public Investment Fund also bought a prominent English football club and the country will host football’s Asian Cup for the first time in 2027.
But Saudi Arabia’s desire to stage the World Cup goes beyond reasons of sporting prestige, according to one regional expert.
“Saudi Arabia is strategically trying to position itself as an AfroEurasian hub — the center of a new world order,” Simon Chadwick, professor of sport and geopolitical economy at Skema Business School in Paris, said of the Saudi-fronted bid. “This positioning would enable Saudi Arabia to exert significant power and influence across a vast geographic area, which it is seeking to achieve by building relationships with key partners.”
“The multipolar staging of a World Cup with Egypt and Greece would be neither altruism nor largesse. Rather, it would form part of a wider plan, which the government in Riyadh is enabling through the potential gifting of stadiums,” he added.
The Saudi move to host the tournament has sparked disgust among human rights watchdogs, who point out the country’s brutal treatment of the LGBTQ+ community and migrant workers.
“Saudi Arabian repression should not be rewarded with a World Cup,” said Minky Worden, director of global initiatives at Human Rights Watch. “So long as Saudi Arabia discriminates against LGBT people and punishes women for human rights activism, and does not have protections for the migrant laborers who would build the majority of the new stadiums and facilities, the country cannot meet the human rights requirements that FIFA already has in place.”
The 2022 Qatar World Cup was blighted by criticism of the Gulf state over its treatment of migrant workers.
In Greece, paying for sports infrastructure is a touchy subject, where it is seen as a monument to government profligacy.
Back in 2004, Athens hosted the Olympic Games, with Greece splurging around €9 billion. However, much of the infrastructure was left abandoned after the Olympic flame went out.
As the country entered a decade-long depression and had to resort to bailout programs to avoid bankruptcy, the Olympics became a source of anger for Greeks who questioned whether the Games pushed their country further into recession. Nearly two decades after the Olympics extravaganza, many of the 30 venues remain unused, while some have been demolished.
Since coming to power in 2019, Greece’s conservative New Democracy government has sought to deepen ties with the Saudis and other Gulf countries, as a response to arch-rival Turkey’s expansionist policy in the region.
Mitsotakis has visited Riyadh multiple times, Greece has delivered military equipment and soldiers to Saudi Arabia and, in July last year, Athens became the first EU capital visited by bin Salman since he personally approved, according to declassified U.S. intelligence, the murder of Washington Post journalist Jamal Khashoggi.
Bin Salman, who is back in the West’s good books thanks to an energy crisis triggered by Russia’s war on Ukraine, signed a number of bilateral agreements in Athens last summer, while pledging to make Greece an energy hub for the distribution of “green hydrogen.”
Saudi Arabia has traditionally enjoyed close diplomatic ties with Egypt. Bin Salman met Egyptian President Abdel Fattah el-Sisi in Cairo last June where he signed billions of euros worth of investment deals and discussed “bilateral, regional cooperation.”
The decision on World Cup 2030 hosting will be made in 2024, with the bidding process set to open officially later this year.
Nektaria Stamouli and Nicolas Camut contributed reporting.
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Ali Walker
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Saudi Arabia can help be a conduit between the U.S. and China at a time of heightened geopolitical tensions, Saudi Finance Minister Mohammed al-Jadaan said Monday at the World Economic Forum in Davos, Switzerland.
The comments came amid questions over what the minister was most worried about in 2023. He called for calm and cooperation, noting his country’s ability to maintain an open dialogue with all major political powers amid Russia’s war in Ukraine, competition between Washington and Beijing, and a volatile energy market.
“I really think that we need to focus on collaboration, cooperation, avoiding more geopolitical tensions, and calling for calm and political solutions to geopolitical tensions,” al-Jadaan told CNBC’s Hadley Gamble.
“We made our position very clear on these issues — whether it is in the general assembly in the United Nations or other forums.”
Mohammed Al-Jadaan, Saudi Arabia’s finance minister, at the World Economic Forum in Davos, Switzerland
Jason Alden | Bloomberg | Getty Images
Asked about Saudi Arabia’s ability to facilitate dialogue between adversarial powers like the U.S. and China, al-Jadaan said: “I would say absolutely yes. We have a very strategic relationship with the U.S., and we have a close relationship with China, and we think we can bridge the gap.”
The Saudi kingdom and the United States have a relationship that dates back to the 1930s, and which has been summed up in broad terms as one of oil in exchange for security. The U.S. has military installments in Saudi Arabia, selling advanced weaponry and providing training and joint operations with the Saudi military.
The Biden administration’s critical stance toward the kingdom poured some cold water on the nearly century-old relationship of late, with Saudi Arabia subsequently refusing to pump more oil for the global market to balance out the loss of Russian supply, despite pleas from the White House. The loss of Russian oil and gas to Western markets comes from sanctions imposed by the U.S. and EU over Moscow’s full-scale invasion of Ukraine.

China, meanwhile, has for years been making inroads — especially economically — as Saudi Arabia’s top trading partner and the largest buyer of its oil. Riyadh’s relationship with Beijing is more functional and economic than strategic, meaning it is not likely to supplant the U.S.’s role in the kingdom anytime soon.
However, Saudi Arabia in recent years has been buying more Chinese weapons, in particular the ones that Washington has been less than willing to sell its Gulf ally, like lethal drones. Technology transfers and Chinese infrastructure projects are also growing in the kingdom, as Saudi Crown Prince Mohammed bin Salman seeks to diversify his country’s alliances and make it more independent.
Chinese President Xi Jinping visited Saudi Arabia in December, and the two countries signed a strategic partnership agreement that the Chinese foreign ministry at the time called “an epoch-making milestone in the history of China-Arab relations.”
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WASHINGTON (AP) — The Biden administration declared Thursday that the high office held by Saudi Arabia’s crown prince should shield him from lawsuits for his role in the killing of a U.S.-based journalist, a turnaround from Joe Biden’s passionate campaign trail denunciations of Prince Mohammed bin Salman over the brutal slaying.
The administration said the prince’s official standing should give him immunity in the lawsuit filed by the fiancée of slain Washington Post columnist Jamal Khashoggi and by the rights group he founded, Democracy for the Arab World Now.
The request is non-binding and a judge will ultimately decide whether to grant immunity. But it is bound to anger human rights activists and many U.S. lawmakers, coming as Saudi Arabia has stepped up imprisonment and other retaliation against peaceful critics at home and abroad and has cut oil production, a move seen as undercutting efforts by the U.S. and its allies to punish Russia for its war against Ukraine.
The State Department on Thursday called the administration’s decision to try to protect the Saudi crown prince from U.S. courts in Khashoggi’s killing “purely a legal determination.”
And despite backing up the crown prince in his bid to block the lawsuit against him, the State Department “takes no view on the merits of the present suit and reiterates its unequivocal condemnation of the heinous murder of Jamal Khashoggi,” the administration’s court filing late Thursday said.
Saudi officials killed Khashoggi at the Saudi consulate in Istanbul. They are believed to have dismembered him, although his remains have never been found. The U.S. intelligence community concluded Saudi Arabia’s crown prince had approved the killing of the widely known and respected journalist, who had written critically of Prince Mohammed’s harsh ways of silencing of those he considered rivals or critics.
The Biden administration statement Thursday noted visa restrictions and other penalties that it had meted out to lower-ranking Saudi officials in the death.
“From the earliest days of this Administration, the United States Government has expressed its grave concerns regarding Saudi agents’ responsibility for Jamal Khashoggi’s murder,” the State Department said. Its statement did not mention the crown prince’s own alleged role.
SAUL LOEB via Getty Images
Biden as a candidate vowed to make a “pariah” out of Saudi rulers over the 2018 killing of Khashoggi.
“I think it was a flat-out murder,” Biden said in a 2019 CNN town hall, as a candidate. “And I think we should have nailed it as that. I publicly said at the time we should treat it that way and there should be consequences relating to how we deal with those — that power.”
But Biden as president has sought to ease tensions with the kingdom, including bumping fists with Prince Mohammed on a July trip to the kingdom, as the U.S. works to persuade Saudi Arabia to undo a series of cuts in oil production.
Khashoggi’s fiancee, Hatice Cengiz, and DAWN sued the crown prince, his top aides and others in Washington federal court over their alleged roles in Khashoggi’s killing. Saudi Arabia says the prince had no direct role in the slaying.
“It’s beyond ironic that President Biden has singlehandedly assured MBS can escape accountability when it was President Biden who promised the American people he would do everything to hold him accountable,” the head of DAWN, Sarah Leah Whitson, said in a statement, using the prince’s acronym.
Biden in February 2021 had ruled out the U.S. government imposing punishment on Prince Mohammed himself in the killing of Khashoggi, a resident of the Washington area. Biden, speaking after he authorized release of a declassified version of the intelligence community’s findings on Prince Mohammed’s role in the killing, argued at the time there was no precedent for the U.S. to move against the leader of a strategic partner.
The U.S. military long has safeguarded Saudi Arabia from external enemies, in exchange for Saudi Arabia keeping global oil markets afloat.
“It’s impossible to read the Biden administration’s move today as anything more than a capitulation to Saudi pressure tactics, including slashing oil output to twist our arms to recognize MBS’s fake immunity ploy,” Whitson said.

Chris McGrath via Getty Images
A federal judge in Washington had given the U.S. government until midnight Thursday to express an opinion on the claim by the crown prince’s lawyers that Prince Mohammed’s high official standing renders him legally immune in the case.
The Biden administration also had the option of not stating an opinion either way.
Sovereign immunity, a concept rooted in international law, holds that states and their officials are protected from some legal proceedings in other foreign states’ domestic courts.
Upholding the concept of “sovereign immunity” helps ensure that American leaders in turn don’t have to worry about being hauled into foreign courts to face lawsuits in other countries, the State Department said.
Human rights advocates had argued that the Biden administration would embolden Prince Mohammed and other authoritarian leaders around the world in more rights abuses if it supported the crown prince’s claim that his high office shielded him from prosecution.
Prince Mohammed serves as Saudi Arabia’s de facto ruler in the stead of his aged father, King Salman. The Saudi king in September also temporarily transferred his title of prime minister — a title normally held by the Saudi monarch — to Prince Mohammed. Critics called it a bid to strengthen Mohammed’s immunity claim.
Eric Tucker and Aamer Madhani contributed.
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As you might have heard, the United States’ relationship with Saudi Arabia is extremely strained at the moment, on account of an October 5 oil production cut that not only benefited Russia financially, but also increased already-rising energy costs for Americans. Yet one person’s friendship with the kingdom has never been better, and it probably will not surprise you to hear that that person is former first son-in-law Jared Kushner, who had a happy little reunion with his Saudi pals this week.
On Tuesday, Kushner showed up for the first day of a three-day conference nicknamed Davos in the Desert, which is taking place in Riyadh and is put on by the Public Investment Fund, Saudi Arabia’s sovereign wealth fund, which appeared to roll out the red carpet for the Boy Prince of New Jersey:
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If the Public Investment Fund sounds familiar to you, that might be because it’s the organization that wrote Kushner’s newly formed private-equity firm a $2 billion check last year. That made the news not just because $2 billion is a very large sum of money, but because the fund’s board—which happens to be led by Crown Prince Mohammed bin Salman—reportedly ignored the concerns of the fund’s due diligence panel, which concluded that no one in their right mind would give the former first son-in-law a dime. Among other things, the panel noted that management was “inexperience[d],” that the kingdom would be responsible for “the bulk of the investment and risk,” that Kushner’s fee seemed “excessive,” and that the firm’s operations were “unsatisfactory in all aspects.”
That the fund gave Kushner $2 billion to invest anyway—and at least $25 million to pocket regardless of performance—led many to conclude that the check was a thank-you to Kushner for his defense of MBS over the murder of Saudi dissident and US resident Jamal Khashoggi. (As a reminder, Kushner reportedly urged Donald Trump to support the prince, arguing that the whole situation—wherein a man was kidnapped, killed, and dismembered via bone saw—would blow over. Later, he defended MBS in his memoir, writing that he chose to set aside his concerns about the grisly murder and focus on all the supposedly positive things the guy had done.) While Kushner has insisted that his going to bat for bin Salman had absolutely nothing to do with the large some of money he subsequently received, others are not convinced.
In June, the House Oversight Committee launched an investigation into the $2 billion investment. As Rep. Carolyn Maloney wrote in a letter to Kushner that month: “The Committee is concerned by your decision to solicit billions of dollars from the Saudi government immediately following your significant involvement in shaping U.S.-Saudi relations.” She added that, among other things, his close ties with MBS “create the appearance of a quid pro quo for your foreign policy work during the Trump Administration.”
The US Treasury, Commerce, and State departments all previously told The New York Times that their top officials would not be attending Davos in the Desert. While Kushner is not the only American businessman to make the trip—the CEOs of Goldman Sachs, JPMorgan Chase, and Blackstone are all there, as is the founder of Bridgewater Associates—he’s definitely the only one who personally helped bin Salman get out of an extremely sticky situation, and might have been rewarded for doing so.
In other Saudi news, Kushner’s father-in-law hosted a heavily criticized Saudi-funded tournament at his golf course in Bedminster, New Jersey, over the summer. In response to outrage from families of 9/11 victims, he falsely and bizarrely claimed that “nobody’s gotten to the bottom of 9/11.” Like father like son-in-law!
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Bess Levin
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The oil cartel OPEC’s choice to pare back oil supply will harm the global economy and especially developing countries, U.S. Treasury Secretary Janet Yellen told the Financial Times in an interview published Sunday.
“I think OPEC’s decision is unhelpful and unwise — it’s uncertain what impact it will end up having, but certainly, it’s something that, to me, did not seem appropriate, under the circumstances we face,” Yellen said, adding that “we’re very worried about developing countries and the problems they face.”
The cartel of 13 oil-producing countries on Wednesday agreed to reduce production by 2 million barrels a day as of November, in the context of an already tight market and rising world inflation in part caused by high energy prices.
OPEC’s move marks a victory for Russia against the EU and the U.S. — Russia’s a major oil producer and an OPEC+ country that cooperates with the cartel. Ever since Moscow’s invasion of Ukraine, the West has been imposing economic sanctions against Russia, including on its oil sector, and encouraging other countries around the world to follow suit. Despite this effort, Moscow continues to sell its oil to countries like India, China and Turkey.
OPEC took the decision despite a flurry of trips by EU and U.S. leaders to Saudi Arabia in recent weeks to try to convince the country’s crown prince and new Prime Minister Mohammed bin Salman to ramp up oil production to fight inflation.
The world oil price already started to rise after the announcement on Wednesday, moving from around $86 to over $93 per barrel.
Meanwhile, Moscow congratulated “the truly balanced, thoughtful and planned work” of OPEC countries which served to “oppose the actions of the United States,” Kremlin spokesperson Dmitry Peskov said in a TV interview broadcasted on Sunday.
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Sarah Anne Aarup
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