Putin claims BRICS working on own payment framework
Date
9/29/2024 12:54:22 AM
(MENAFN) Russian President Vladimir Putin announced on Thursday that the BRICS member countries are collaboratively establishing a new payment and settlement framework aimed at facilitating trade within the bloc. Speaking at the Russian Energy Week forum in Moscow, Putin highlighted the significance of Russian oil and gas supplies to "friendly" nations, which he believes will enhance their economic stability and competitiveness on the global stage.
However, Putin also acknowledged the challenges that arise from foreign nations struggling to make payments for Russian energy, particularly following Russia's exclusion from the SWIFT international banking system due to extensive sanctions imposed by the West in response to the Ukraine conflict. To address these challenges, he stated, "As part of cooperation with BRICS countries, we are working to create our own payment and settlement system." This new system is intended to enable member states to effectively manage their foreign trade transactions independently.
In addition to establishing this payment framework, Russia is actively promoting the use of national currencies in trade with BRICS nations. Putin noted a significant increase in the share of the Russian ruble in foreign trade operations, which has nearly tripled from 2021 to 2023. As of the first half of this year, ruble transactions accounted for 39.4 percent of these operations, reflecting growing interest from partners in utilizing national currencies.
As the current chair of BRICS, Russia is set to host the bloc's annual summit in Kazan from October 22 to 24. With Iran, Egypt, Ethiopia, and the UAE officially joining as new members on January 1, 2024, the group will expand its influence, joining the ranks of Brazil, Russia, India, China, and South Africa. The formation of an independent payment system could play a pivotal role in strengthening economic ties among these nations, fostering a more resilient trading environment amidst global economic challenges.
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