Abu Dhabi’s leading sovereign wealth fund Mubadala Investment Company has said it will pause new investments in Russia, which includes oilfield stakes in Western Siberia and a partnership in the Gazpromneft-Vostok joint venture.
The company’s chief executive Khaldoon Khalifa Al Mubarak said at an investor conference in Dubai on Monday that it will halt Russian investments, in the wake of the Ukraine crisis.
"What is happening in this crisis between Russia and Ukraine is a travesty, with catastrophic consequences, in terms of human life and in terms of the impact it's having on economies all over the world," he said.
"Obviously, in this environment, we have to pause investment in this market, in Russia," Al Mubarak noted.
The United Arab Emirates (UAE), is a key member of the wider Opec+ grouping that also includes Russia.
The nation did not support a recent UN Security Council motion to condemn the Russian invasion.
However, following the comments by its chief executive, Mubadala will be the first significant Middle East entity to pause fresh investments in Russia, Upstream understands.
According to Mubadala’s website, the company has about $3 billion worth of investments across multiple sectors in Russia.
In September 2018, Mubadala Petroleum (the wealth fund’s subsidiary) entered into a joint venture to develop certain oilfields within seven blocks in the Tomsk and Omsk regions of Western Siberia together with Gazprom Neft and the Russian Direct Investment Fund (RDIF).
Mubadala also holds a key interest in the Gazpromneft-Vostok joint venture with Gazprom Neft holding the majority stake, and Russia’s RDIF as a minority partner.
In 2017, oil production from the joint venture's 13 fields totalled 33,000 barrels per day, according to Mubadala.
The company last year also acquired a 1.9% stake in Russia's largest petrochemicals company Sibur.
Other Middle Eastern state-owned funds such as Saudi Arabia's Public Investment Fund have not yet commented on their Russia investments.