Prof. Azmat Gani

Department of Economics and Finance

College of Economics and Political Science

Oman’s Vision 2040 strategic framework places emphasis on increasing the levels of integration with the world economy. Oman is actively responding to the economic pressures arising from the dynamism of global geopolitical and economic developments through its increased willingness to trade. Increasing trade and access to markets with Russia is becoming an important foreign policy strategy for Oman. Oman's diplomatic engagement with Russia was formally established in 1985, starting with a cooperative engagement framework, focused on stronger political dialogue, coordination of energy markets and furthering economic and trade interactions. Following this, Oman's legal basis of economic cooperation was strengthened with the signing of the Intergovernmental Trade, Economic and Technical Cooperation Agreement in 1994. This agreement directed economic engagement across several sectors of the economy. Much of the momentum and intensification on this agreement began after Russia’s confirmation of membership to the World Trade Organisation (WT0) in August 2012.

While Oman's economic engagement with Russia prevailed at a low level following its membership to the WTO, a significant development emerged in 2023 through the signing of an Agreement between Oman and Russia on the elimination of double taxation on income and the prevention of tax evasion. Both nations have demonstrated increased interest in expanding relations through participation in forums such as the "Russia - Islamic World: Kazan Forum". In recent years, the economic relationship has strengthened, as the Oman and the Russian policymakers have consulted more frequently, promoting mutually reinforcing visions for regional security. Much of Oman's relations with Russia have evolved into a pragmatic economic and political engagement, driven by Oman's unique stance of maintaining neutrality in foreign relations. On the other hand, Russia’s engagement with Oman has been strategic, aimed at increasing its presence in Oman and the wider Gulf region. Oman's foreign relations and engagement have been widely recognised as among the Gulf's most independent, which has enabled it to engage constructively with regional and global competitors, including Russia. Oman's current relations with Russia fall within several well-defined areas, including political and diplomatic engagements, economic and energy cooperation, security and defence, and fostering societal and cultural understanding.

In terms of Oman's political and diplomatic engagement, Oman's primary goal is to maintain a balanced foreign policy with all nations, which has provided a strong foundation for its foreign policy stability, well recognised internationally. With Russia, Oman has engaged in high-level diplomatic exchanges, much of which has been strengthened post-2011, following the Arab uprising, as the two countries adopted common positions on regional security crises. Oman was the only Gulf country that did not suspend diplomatic relations with Syria in 2011 following the Syrian uprising, viewed favourably in Moscow. Oman regards its diplomatic engagement with Russia complementing its economic cooperation initiatives. Its engagements in addressing conflicts across the region, such as those in Yemen and Iran, as a reliable intermediary have been recognised and valued by several nations, including Russia. Oman is seen as a reliable and effective mediator.

As an exporter of energy products, among others, and with a strong desire to maintain energy market share, Oman has a vested interest in the global energy market, which forms an essential part of its international economic cooperation. Russia too is a significant player in the global energy market; hence, the Oman-Russia energy relations constitute an important platform for continued economic cooperation on energy production and market stabilisation initiatives. For example, Oman’s participation in OPEC+ beginning in 2016 has greatly enhanced the two countries' efforts in planning energy markets, strengthening their cooperation and communication. There are areas of economic cooperation beyond the hydrocarbon sector. For example, the two nations are strengthening of their cooperation in fisheries, mining, services (logistics and education) and tourism. Security and defence cooperation is another aspect of Oman’s growing relations with Russia.

The strengthening of societal and cultural ties is another area of expansion in Oman-Russia relations as both nations appreciate the people-to-people ties as part of its cultural heritage, and this cultural connection is also gradually evolving with Russia, as it is with other countries. On the other hand, Russia has engaged in a stronger cultural diplomacy in Oman and its neighbouring Gulf  countries, as evidenced by an increase in visitor arrivals from Russia to Oman. Oman is also building relations in the areas of education and student exchanges.

There are indications that Oman and Russia are continuing to deepen their economic relations. In April 2025, His Majesty Sultan Haitham bin Tarik and President Vladimir Putin of the Russian Federation agreed on nine memoranda of understanding at Kremlin Palace in Moscow covering areas visa waiver agreement, establishment of joint committee on economic and technical cooperation, climate change and low-carbon development, transport and transit, and cooperation in combating money laundering and terrorist financing. In September 2025, Oman ratified the amendments to the 1994 agreement on trade, economic and technical collaboration aiming for greater engagement through the establishment of a joint committee to enhance trade, economic and technical cooperation.

Overall, while economic partnership connectivity between the two nations evolved slowly over the past several years, there has been greater intensification and understanding, leading to a stronger connected relationship, as evidenced by these recent developments. Oman-Russia relations are likely to be strengthened in the short to medium term, given the geopolitical and security dynamics arising from the 2026 Israel-USA-led war on Iran.