MOSCOW (CHATNEWSTV) — Sanctioned Russian arms companies sold Saudi Arabia a $2 billion air defense system, according to leaked documents analyzed by OCCRP and The Kyiv Independent. The deal, which includes the Pantsir-S1M system, appears to have continued after sanctions were imposed on Russian firms following the 2022 invasion of Ukraine.
Trade data shows that equipment deliveries occurred in 2023, despite sanctions imposed by the U.S., European Union, and other nations. The contract, signed in April 2021, extends to 2026, raising questions about Saudi Arabia’s ongoing cooperation with blacklisted Russian entities.
A Multi-Billion Euro Deal
Leaked documents from Roselectronics, a subsidiary of the Russian state-owned defense conglomerate Rostec, detail the contract between Saudi Arabia and Rosoboronexport, another Rostec subsidiary. Saudi Arabia agreed to pay €2.2 billion ($2.3 billion) for the Pantsir air defense system, designed to intercept missiles, drones, and aircraft.
The documents reveal that Saudi Arabia transferred an initial payment of €326 million ($335 million) in August 2021. Further payments remain unclear, as the leaked records only cover transactions up to May 2022.
“Russia sees arms sales as another tool of statecraft,” said Anna Borshchevskaya, a senior fellow at the Washington Institute for Near East Policy.
“It’s a tactic to bolster its economy and influence global politics.”
Legal and Strategic Risks
Saudi Arabia faces no domestic legal barriers to the deal, as the kingdom has not sanctioned Russian firms. However, experts warn that Saudi entities risk U.S. secondary sanctions for dealing with blacklisted Russian companies.
“The U.S. can impose secondary sanctions on individuals or entities it finds violating its sanctions,” said Agiya Zagrebelska of the Economic Security Council of Ukraine.
The deal’s geopolitical implications extend beyond economics. The leaked documents reveal that Russian officials gained access to Saudi air defense facilities in 2022, potentially exposing sensitive details about the U.S.-made Patriot systems operated by Saudi Arabia.
A Broader Context
Russia’s arms sales to Saudi Arabia are part of a larger pattern, with countries like China, India, Algeria, and Egypt continuing to buy Russian weaponry despite international sanctions. Export data confirms these transactions, underscoring Russia’s ability to circumvent economic restrictions.
Beyond military hardware, Saudi Arabia and Russia explored future collaboration. Proposals in the leaked documents include establishing assembly plants for Pantsir systems in Saudi Arabia and constructing training facilities for personnel.
Sanctions’ Impact on Production
The feasibility of future joint production remains uncertain. Sanctions have disrupted Russia’s supply chains, making it harder to source essential components.
“There are doubts about whether Russia can move forward with co-production agreements,” said Ivan Kirichevsky, a weapons expert at Defense Express.
“They are highly dependent on imported components.”
Geopolitical Ties
Saudi Arabia’s relationship with Russia reflects a complex geopolitical calculus. While the kingdom has pledged $400 million in humanitarian aid to Ukraine and voted for Russian troop withdrawal at the United Nations, it has abstained on other key resolutions.
“Arms sales are not just about money—they’re about geopolitics,” said Zagrebelska.
By Alisa Yurchenko
(The Kyiv Independent, in partnership with OCCRP)
