Putin Advocates for New Global Payment System at BRICS Summit

Putin stated at the summit which was held in the Russian city of Kazan that the dollar has been used as a weapon.

Vladimir Putin issued a call for an alternative international payment system to open the expanded Brics summit which could prevent the US from using the dollar as a political weapon. 

Although the progress was indicated to be made on an alternative payment system which was confirmed at the summit communique. 

Putin stated at the summit which was held in the Russian city of Kazan that the dollar has been used as a weapon. Almost about 95% of the trade between Russia and China are now conducted in rubles and yuan, Putin stated. 

The idea of moving towards de-dollarizing the economy of the world distresses the members of the Brics especially India and Brazil. The two countries do not wish to run on pro-Chinese and anti-western while expanding their club. 

The swift payment system based in Belgium, Russia is moving towards payment infrastructure and settlement to bypass.

The concept of de-dollarization is likely to be the most practical proposal to emerge from the summit, which has given Putin his most conspicuous international platform since Russia’s invasion of Ukraine in February 2022. The conference was attended by nine Brics members, including India’s Prime Minister Narendra Modi, China’s Premier, and South Africa’s President Cyril Ramaphosa.

The UN secretary general, António Guterres, arrived late on Monday, with criticism from Ukraine ringing in his ears for making time to fly from New York to meet with a Russian leader for whom an arrest warrant has been issued by the International Criminal Court. Ukraine protested that Guterres declined to attend the July peace summit.

Guterres’ spokesperson stressed that he would not change any of his long-held beliefs on the illegality of Russia’s invasion of Ukraine, and that he would make this plain in both public and private statements. The spokeswoman noted that specific measures had been put in place to allow the UN secretary general to meet with world leaders who are wanted for arrest.

Containing a single reference to a joint Brazil-China peace plan for UKraine is a part of the final summit communique. This is saving the strongest language for a condemnation of Israel in Gaza. 

While Xi discussed the war in a private session with Putin, Prime MInister Modi was more open about wanting peace in Ukraine among other world leaders. Putin has stated that Moscow will not return the four districts of eastern Ukraine that it claims are now part of Russia.

“The Brics summit, which Russia planned to use to split the world, has once again demonstrated that the world majority remains on the side of Ukraine in its quest to guarantee a comprehensive, just and sustainable peace,” the Ukrainian foreign ministry said in a statement.

Now in its 16th year, the future purpose and size of the Brics summit has proved to be controversial while according to Putin it would be wrong to eliminate the global south countries interest. 

India and Brazil, in an alliance, have been trying to prevent Brics, which moved up to 9 from 5 members at the Brics summit in South Africa last year. Acting as a cheerland for Russia and China, the summit has been simply being reshaped simply into an anti-western alliance. 

The admitted nations were only agreed after Brazil successfully held out a veto against Venezuela.

Cuba, Bolivia, Thailand, Vietnam, Malaysia, Indonesia, Belarus, Turkey, Nigeria, Uganda, Kazakhstan, and Uzbekistan are anticipated to join, making up a diverse geographic and political group. The choice by Turkey, a NATO member, to attend has raised concerns.

Agathe Demarais, a sanctions specialist at the European Council of Foreign Relations, stated, At this time, it is difficult to see widespread development and use of Brics financial mechanisms globally.

The US dollar continues to dominate the global currency landscape, both in terms of trade transactions and foreign exchange reserves; more than 80% of worldwide trade transactions are invoiced in US dollars, which also account for over 60% of central bank reserves.