Putin seeks BRICS alliance support to counter Western influence
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Russian President Vladimir Putin is set to host a summit with BRICS leaders next week, aiming to strengthen ties and gather support from the expanding group amid Russia's ongoing tensions with the West.
The BRICS bloc, which now represents roughly one-third of the global economy, will discuss a range of initiatives designed to bolster economic independence from Western financial systems.
Leaders from Brazil, India, China, South Africa, Egypt, Ethiopia, Iran, and the UAE will attend the event, with Saudi Arabia, newly invited to join the group, represented by its foreign minister.
Russia will propose an alternative payment network using BRICS nations' currencies. This system, supported by blockchain technology, would link national commercial banks through BRICS central banks, eliminating reliance on the U.S. dollar and shielding members from external pressures. The initiative aims to ensure smooth trade even if a member is excluded from international financial systems.
A new infrastructure will be proposed to facilitate cross-border securities trade among BRICS members, ensuring full access to financial markets, even if cut off from Western financial networks. This would help members continue international trade without reliance on Western financial systems.
Russia will suggest creating a BRICS-backed reinsurance company to protect member nations' trade, particularly in critical goods and commodities. This comes in response to Western sanctions, like the price cap on Russian oil, which have limited access to shipping and insurance services.
A financial facility akin to the International Monetary Fund (IMF) will be proposed to provide economic assistance to BRICS nations during crises. This alternative would reduce reliance on Western institutions for financial support.
Russia plans to launch a commodities trading platform focused on grain and other essential goods. The platform will be coupled with a pricing agency that offers market analysis, independent of Western-controlled exchanges, allowing BRICS countries to set their own commodity prices.
Moscow will propose better coordination among BRICS member credit rating agencies, using artificial intelligence to reduce human bias. This will help insulate BRICS markets from potential withdrawals by Western credit rating agencies.
