BRICS Summit to be Hosted by Putin Next Week

MOSCOW (Reuters) – Russian President Vladimir Putin will host a summit of BRICS leaders next week, aiming to garner support in his standoff with the West from the expanded group, which now represents about a third of global economic output.

Leaders from Brazil, India, China, South Africa, Egypt, Ethiopia, Iran, and the UAE will attend the event. Saudi Arabia, invited to join, will be represented by its foreign minister.

Proposals from Moscow

BRICS Cross-Border Payments Initiative

An alternative payment system in national BRICS currencies is proposed, including a new messaging system and a network of national commercial banks linked through BRICS central banks. This aims to remove dependency on the U.S. dollar. The system intends to be immune to external pressures and will utilize blockchain technology for secure transactions, ensuring smooth trade flows among member countries.

BRICS Clear

An international settlement and depository infrastructure, named BRICS Clear, is proposed to enhance cross-border trade in national securities. This will provide all members access to BRICS financial markets, even if they are cut off from Western systems.

BRICS Reinsurance

To facilitate uninterrupted goods shipment among members, Russia proposes establishing a BRICS reinsurance company. This addresses the challenge posed by Western reinsurance firms, which have restricted services, particularly concerning Russian oil exports since 2022, following the imposition of price caps.

BRICS Contingent Reserve Arrangement

An international facility aimed at providing support during economic crises is proposed. This arrangement will serve as an alternative to funding from the International Monetary Fund (IMF).

BRICS Grain Trade Exchange

Establishing a trading platform for grain and major commodities, alongside a pricing agency for market analytics, is suggested, aiming to reduce reliance on Western bourses for price setting.

Cooperation on Credit Ratings

Improved communication and experience-sharing between member countries' credit rating agencies, employing artificial intelligence to reduce bias, is proposed to protect BRICS markets from the withdrawal of Western agencies.