Financial cooperation, BRICS expansion mark summit hosted by Putin

Russian President Vladimir Putin on Thursday presided at the closing session of a summit of the BRICS bloc of developing economies, praising its role as a counterbalance to what he called the West’s “perverse methods”.

The three-day summit in the city of Kazan covered the deepening of financial cooperation, including the development of alternatives to Western-dominated payment systems, efforts to settle regional conflicts, and expansion of the BRICS group of nations.

The alliance that initially included Brazil, Russia, India, China and South Africa when it was founded in 2009 has expanded to embrace Iran, Egypt, Ethiopia, the United Arab Emirates and Saudi Arabia. Turkey, Azerbaijan and Malaysia have formally applied to become members, and several other countries have expressed interest in joining.

The summit was attended by leaders or representatives of 36 countries, highlighting the failure of United States-led efforts to isolate Russia over its actions in Ukraine. The Kremlin touted the summit as “the largest foreign policy event ever held” by Russia.

Speaking at what was dubbed the ‘BRICS Plus’ session, which included countries that are considering joining the bloc, Putin accused the West of trying to stem the growing power of the Global South with “illegal unilateral sanctions, blatant protectionism, manipulation of currency and stock markets, and relentless foreign influence ostensibly promoting democracy, human rights, and the climate change agenda”.

Russia has specifically pushed for the creation of a new payment system that would offer an alternative to the global bank messaging network, SWIFT, and allow Moscow to dodge Western sanctions and trade with partners.

In a joint declaration on Wednesday, participants voiced concern about “the disruptive effect of unlawful, unilateral, coercive measures, including illegal sanctions” and reiterated their commitment to enhancing financial cooperation within BRICS. They noted the benefits of “faster, low-cost, more efficient, transparent, safe and inclusive cross-border payment instruments built upon the principle of minimising trade barriers and non-discriminatory access”.

China’s President Xi Jinping has emphasised the bloc’s role in ensuring global security. Xi noted that China and Brazil have put forward a peace plan for Ukraine and sought to rally broader international support for it. Ukraine has rejected the proposal.

“We should promote the de-escalation of the situation as soon as possible and pave the way for a political settlement,” Xi said on Thursday.

Putin and Xi had announced a “no-limits” partnership weeks before Russia sent troops into Ukraine in 2022. They already met twice earlier this year, in Beijing in May and at a Shanghai Cooperation Organization summit in Kazakhstan in July.

Russia’s cooperation with India also has flourished, as New Delhi sees Moscow as a time-tested partner since the Cold War, despite Russia’s close ties with India’s rival, China. While Western allies want New Delhi to be more active in persuading Moscow to end the fighting in Ukraine, Indian Prime Minister Narendra Modi has avoided condemning Russia while emphasising a peaceful settlement.

Putin, who held a series of bilateral meetings on the summit’s sidelines, was set to meet on Thursday with UN Secretary General Antonio Guterres, who is making his first visit to Russia in more than two years. Guterres’ trip to Kazan drew an angry reaction from Kyiv.

Addressing the BRICS Plus session, Guterres urged an immediate end to the fighting in Gaza, Lebanon, Ukraine and Sudan. “We need peace in Ukraine, a just peace in line with the UN Charter, international law and General Assembly resolutions,” he said.

AP