"We are also studying what we can do in collaboration with Saudi Aramco," Ivanov told a recent press conference in Riyadh. He added that the company would definitely be interested in any Saudi initiative for exploring gas in the Red Sea.

Ivanov, underlining his bank‚s commitment, disclosed that two Russian investment funds in the energy and real estate sectors collectively worth $6 billion are targeting Saudi investors.

Also attending the press conference were Anatoly Miliukov, executive vice president and head of asset management, Gazprombank, and Abdullah Zaid Al-Meleihi, chairman, Arabian Investors Group (AIG).

Ivanov said the Russia Energy Fund and the Russia Real Estate Fund were valued at $5 billion and $1 billion respectively.

"We worked hard to launch these two funds which were facilitated by the good political relations between Russia and Saudi Arabia," he said.

He added that Al-Meleihi had already committed $100 million to the Real Estate Fund, while others were also pitching in.

Miliukov that besides committing $100 million to the Russia Real Estate Fund, he was also seeking investments in the energy fund.

He said Gazprombank would explore the possibility of establishing its presence in the Kingdom where, besides the oil and gas sector, there were tremendous opportunities in the light of the economic cities and other mega projects that had been launched or are in the pipeline.

"There is a great deal of interest among Saudis. We have received various commitments that are being evaluated. We are also short-listing companies that will help us manage the fund," Ivanov said.

As for the energy fund, commitments from Saudi investors alone exceeded $1 billion, while Gazprombank would be the co-investor.

Miliukov said that a noteworthy aspect of the Russian market was that it has remained immune to the fallout of the subprime crisis brewing in the US housing market and in Europe.

"Investors could expect attractive returns on real estate investments in Russia of 20-22 percent a year," he said, and added that the strategy behind the launch of these two funds was to maximise returns on investments.

"Russian oil companies are dramatically undervalued compared to the energy market," Miliukov said.

"Equity investments are also very attractive, given the fact that Gazprom is the largest oil company in the world. It is six times bigger than ExxonMobil. So we at Gazprombank will be co-investing in these funds," he said.