Russian President Vladimir Putin is seen here during a meeting with Chinese President Xi Jinping weeks before the launch of the unprovoked Russian attack on Ukraine. During the meeting, both countries signed a “limitless pact”
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In a transparent attempt to end its international isolation after the Ukraine war, Russian President Vladimir Putin has called for strengthening ties between the BRICS, the bloc of five developing nations that includes China and India.
On Thursday, leaders from Brazil, Russia, India, China and South Africa hold their group’s 14th annual meeting. Practically addressing a business forum the day before, Putin denounced the international sanctions imposed on his country, calling them “politically motivated.”
In his keynote address on Wednesday, Chinese President Xi Jinping echoed that sentiment, attacking the use of sanctions.
“Empowering the global economy and turning it into its own tool or weapon, and voluntarily imposing sanctions using its leading position in the international financial and monetary systems will only end up harming one’s own interests and those of others, and inflicting suffering on everyone.” , Xi said, according to a state media transcript in English. He did not name the US in his statements.
Putin also claimed that the BRICS economies are looking to create an international reserve currency using the basket of their own currencies.
“The Russian financial messaging system is open to connection with banks in the BRICS countries. The Russian 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 transcript from the Kremlin.
Putin’s remarks come after Russia was cut off from the SWIFT interbank messaging system as part of sanctions.
China has put a lot more energy into the Brics summit. China is isolating itself internationally 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 account for about 35% of world reserves. He also said that trade between the Russian Federation and the BRICS countries increased by 38% to $ 45 billion in the first three months of 2022.
The Russian president also said there are plans to coordinate to “develop transport infrastructure, rebuild logistics routes and create new production lines.” Putin said there were ongoing talks about opening Indian store chains in Russia and increasing 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
Still, James Crabtree of the International Institute for Strategic Studies said China was the driving force behind this year’s BRICS meeting. China is looking for the BRICS to gain influence on the international stage, said Crabtree, executive director of IISS-Asia.
“China has put a lot more energy into the BRICS summit. China is isolating itself internationally after Ukraine and is looking for counterweight blocks,” he told CNBC’s “Street Signs Asia.”
China and Russia signed a “limitless” partnership weeks before the Ukrainian war. Beijing has not denounced Moscow’s aggression despite widespread Western condemnation. In fact, none of the BRICS nations has spoken out against the Russian invasion, only making vague calls for peace through negotiations.
But the block’s effectiveness is undermined by the fact that it is not fully united, Crabtree said.
“One of the problems with the BRICS is that it is divided internally. China and Russia agree, but there are also India and Brazil, both of which are usually quite skeptical of China,” he said. that this limited what the group could do.
China would also like to expand the group to include countries such as Mexico, Saudi Arabia and Turkey, Crabtree said.