Russian President Vladimir Putin is here during a meeting with Chinese President Xi Jinping weeks before the start of the unprovoked Russian attack on Ukraine. During the meeting, the two countries signed a “pact without restrictions”
Anatolian Agency Anatolian Agency Getty Images
In a transparent effort to end his international isolation after the war in Ukraine, Russian President Vladimir Putin called for stronger ties between the BRICS, a bloc of five developing countries that includes China and India.
The leaders of Brazil, Russia, India, China and South Africa are holding their group’s 14th meeting on Thursday. In a speech to a business forum the day before, Putin condemned international sanctions against his country, calling them “politically motivated.”
In his keynote address Wednesday, Chinese President Xi Jinping reiterated this view, attacking the use of sanctions.
“To politicize the global economy and make it your tool or weapon and to deliberately impose sanctions, using your core position in the international financial and monetary systems, will ultimately only harm your own interests as well as those of others, and cause suffering of all, “Xi said, according to a state-run English media transcript. He did not name the United States in his speech.
Putin also claims that the BRICS economies are seeking to create an international reserve currency using the basket of their own currencies.
“Russia’s financial communications system is open to liaison with BRICS banks. Russia’s MIR payment system is expanding its presence. We are exploring the possibility of creating an international reserve currency based on the BRICS currency basket,” he said. , according to an official English-language transcript from the Kremlin.
Putin’s remarks came after Russia was cut off from the interbank SWIFT messaging system as part of sanctions.
China has invested much more energy in the BRICS summit. China is becoming internationally isolated after Ukraine and is looking for counterweight blocs.
James Crabtree
Executive Director, IISS-Asia
Putin noted that the total international reserves of the BRICS countries this year amount to about 35% of world reserves. He also said that trade between the Russian Federation and the BRICS countries had increased by 38% to $ 45 billion in the first three months of 2022.
The Russian president also said there were plans for co-ordination to “develop transport infrastructure, rebuild logistics routes and create new production chains”. Putin said discussions were continuing to open Indian chain stores in Russia and increase the share of Chinese cars and other vehicles in the Russian market.
“Russia’s presence in the BRICS countries is growing. There has been a marked increase in Russian oil exports to China and India. Agricultural cooperation is developing dynamically,” Putin said.
The role of China
However, James Crabtree of the International Institute for Strategic Studies said China was the driving force behind this year’s BRICS meeting. China is looking at the BRICS to gain influence on the international stage, said Crabtree, executive director of IISS-Asia.
“China has invested much more energy in the BRICS summit. China is isolating itself internationally after Ukraine and looking for counterweight blocs,” he told CNBC Street Signs Asia.
China and Russia signed an unrestricted partnership weeks before the war in Ukraine. Beijing has not called for Moscow’s aggression, despite widespread condemnation from the West. In fact, none of the BRICS countries has spoken out against the Russian invasion, but only made vague calls for peace through negotiations.
But the bloc’s effectiveness has been undermined by the fact that it is not completely unified, Crabtree said.
“One of the problems with the BRICS is that it is internally divided. “China and Russia agree with each other, but you also have India and Brazil, both of which tend to be quite skeptical of China,” he said, adding that this limits what the group can do.
China would also like to expand the group to include countries such as Mexico, Saudi Arabia and Turkey, Crabtree said.
Add Comment