The Grievance Fest

Russian President Vladimir Putin urged leaders of the intergovernmental BRICS group to deepen financial cooperation and develop alternatives to the US-led financial system following the conclusion of the three-day summit in Russia on Thursday, the Associated Press reported.

Earlier this week, leaders and representatives of 36 countries met in Russia’s southwestern city of Kazan for the BRICS summit, a bloc that began in 2009 and originally included Brazil, Russia, India, China and South Africa, but has now expanded to include Iran, Egypt, Ethiopia, the United Arab Emirates and Saudi Arabia. Turkey, Azerbaijan and Malaysia have formally applied to become members.

The meeting showcased Putin’s determination to position the group as a leading force in the emerging multipolar world order, analysts said, despite Western efforts to isolate Russia over its 2022 invasion of Ukraine.

The summit also allowed Putin to show how Western pressure on Russia has not dented its power or diminished its clout on the world stage, the Guardian wrote.

During the talks, Putin proposed new payment structures, including the BRICS Bridge, a financial messaging system designed to bypass sanctions and reduce reliance on the US dollar.

The proposed BRICS Bridge would use blockchain and digital currencies to facilitate secure transactions within the bloc, providing an alternative to the Western-led SWIFT network.

Putin emphasized the need for the bloc’s members to adopt financial systems that avoid Western control, accusing Western powers of “using the dollar as a weapon” and arguing that sanctions have undermined global trust in the currency, the Financial Times wrote.

Putin pointed out that BRICS countries now represent half of the world’s population, positioning it as a “global majority” capable of challenging Western hegemony.

The summit marked the first meeting of BRICS since its expansion last year and signaled the bloc’s growing geopolitical influence.

However, while Russia, China, and Iran support these efforts to create financial alternatives, other BRICS members remain cautious due to their economic ties to the West, noted Bloomberg.

Despite the bloc’s expansion, practical steps toward implementing new financial systems remain limited: The grouping previously introduced the idea of a common currency last year, but members have yet to fully commit to the plan.

While the BRICS leaders issued a joint declaration about their commitment to enhancing financial cooperation, they did not provide a specific timeline for reforms.

Observers noted that the summit underscores Moscow’s increased efforts to push for alternative financial networks to shield itself from sanctions. The country now conducts 80 percent of its cross-border trade using non-Western currencies,

However, fears of new US sanctions have made banks in countries, such as China and Turkey, hesitant to engage fully with Moscow.

Meanwhile, the summit also saw diplomatic progress between India and China, with both countries announcing a “military disengagement” agreement along their disputed border, CNN added.

The agreement comes four years after a deadly clash between Chinese and Indian troops at the border that left 20 Indian and four Chinese soldiers dead.

Both nations said the deal allows for a return to pre-2020 patrolling arrangements and marks a step toward easing tensions between the nuclear-armed neighbors.

Still, they added that many other issues, such as troop demobilization and infrastructure removal, remain unresolved. Others also noted that buffer zones created after the 2020 conflict could still lead to tensions, as both sides are keen on maintaining strategic control over key areas.