Moscow:
Russian President Vladimir Putin will host a summit of BRICS leaders next week, seeking support in his standoff with the West from the expanded group that now represents about a third of global economic output.
Russia says the event will be attended by leaders from Brazil, India, China, South Africa, Egypt, Ethiopia, Iran and the UAE, and Saudi Arabia – which has been invited to participate – will be represented by its minister of Foreign Affairs.
Here are some of the proposals Moscow will put forward:
BRICS CROSS-BORDER PAYMENT INITIATIVE
An alternative payment system in national BRICS currencies that would include a new messaging system and a network of national commercial banks linked through the BRICS central banks, eliminating the need to exchange local currencies through the US dollar.
The system would be immune to outside pressure and will use blockchain technology to store and transfer digital tokens, backed by national currencies, to make it more secure and reduce transaction costs. The aim is to ensure smooth trade flows between member states, even if one or more members are denied access to the international financial system.
BRICS CLEAR
According to Russia, an international settlement and custody infrastructure would facilitate cross-border trading in national securities. The idea is to give all members full access to the financial markets of the BRICS countries, even though they are cut off from Western financial infrastructure.
BRICS REINSURANCE
The proposal is to establish a BRICS reinsurance company that would allow uninterrupted shipment of goods and important commodities between its members in the event that Western reinsurance companies, which dominate international trade, refuse to provide their services.
This issue is especially relevant for Russia because Western countries have imposed a price ceiling on its oil since 2022, blocking access to Western shipping and insurance services if the oil sells for more than $60 a barrel.
BRICS CONDITIONAL RESERVE SCHEME
An international financial facility aimed at supporting member states in times of economic crises, which could serve as an alternative to financing by the International Monetary Fund (IMF).
BRICS GRAIN TRADE EXCHANGE
The proposal calls for the creation of a trading platform for grain and other key commodities, with an associated pricing agency that will provide price data and market analysis. Currently, international prices for key commodities are set on Western stock exchanges.
COOPERATION IN THE FIELD OF CREDIT RATINGS
Better communication and exchange of experience between Member States’ rating agencies, using artificial intelligence to help eliminate human bias. This measure would protect the BRICS markets from a withdrawal by Western credit rating agencies.
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