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 “no-limits 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 countries which includes China and India.
On Thursday, the leaders of Brazil, Russia, India, China and South Africa will hold the 14th annual meeting of their group. Almost as he spoke at a business forum a day earlier, Putin condemned the international sanctions imposed on his country, calling them “politically motivated.”
In his keynote address on Wednesday, Chinese President Xi Jinping repeated that feelingattack the use of sanctions.
“Politicizing the global economy and making it its tool or weapon and deliberately imposing sanctions by using its primary position in international financial and monetary systems will only end up harming one’s own interests as well as the interests of others and inflicting suffering. All, said Xi according to an English-language state media transcript. He did not mention the United States in his remarks.
Putin also claimed that the BRICS economies are considering creating an international reserve currency using the basket of their own currencies.
“The Russian financial messaging system is open to liaison with the banks of the BRICS countries MIR payment system expands its presence. We are exploring the possibility of creating an international reserve currency based on the curve of BRICS currencies, “he said, according to an official. English-language print from the Kremlin.
Putin’s remarks come after Russia was cut off from SWIFT’s interbank messaging system as part of sanctions.
Putin noted that the BRICS countries’ total international reserves 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 reach $ 45 billion in the first three months of 2022.
The Russian president also said that there are also plans to coordinate to “develop transport infrastructure, rebuild logistics routes and create new production chains.” Putin said there are ongoing discussions about opening Indian chain stores 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 noticeable increase in exports of Russian oil to China and India. Agricultural cooperation is developing dynamically,” Putin said.
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 to the BRICS to gain influence on the international stage, said Crabtree, IISS-Asia’s CEO.
“China has put a lot more energy into the BRICS summit. China is becoming internationally isolated in the wake of Ukraine, and it’s looking for counterweight blocs,” he told CNBC’s Street Signs Asia.
China and Russia signed a “no-limits” partnership weeks before the Ukraine war. Beijing has not proclaimed Moscow’s aggression despite widespread condemnation from the West. In fact, none of the BRICS nations has spoken out against the Russian invasion, but has only issued vaguely worded calls for peace through negotiations.
But the effectiveness of the block is undermined by the fact that it is not completely united, Crabtree pointed out.
“One of the problems with BRICS is that it is divided internally. China and Russia agree with each other, but you also have India and Brazil, both of which tend to be quite skeptical of China,” he said, adding, 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.