BRICS Summit in Kazan; PART 2 after the summit

Western mainstream media’s key message of the summit can be encapsulated in BBC’s headline “Putin gathers allies to show West’s pressure isn’t working” of Oct 22. The whole summit was once shortly commented and then forgot. However, the significance of the summit was historical, in many ways.

Bilateral meetings before and during the summit

Russian President Vladimir Putin held negotiations with his visiting counterparts from the United Arab Emirates Sheikh Mohamed bin Zayed Al Nahyan, Chinese President Xi Jinping, Iranian President Masoud Pezeshkian, Turkish President Recep Tayyip Erdogan, Ethiopian Prime Minister Abiy Ahmed, Indian Prime Minister Narendra Modi, President of South Africa Cyril Ramaphosa, President of Egypt Abdel Fattah El-Sisi, Palestinian President Mahmoud Abbas, Ethiopia’s Prime Minister Abiy Ahmed Ali, Lao President Thongloun Sisoulith, Mauritanian President Mohamed Ould Ghazouani and Bolivian President Luis Arce, Vietnamese Prime Minister Pham Minh Chinh and UN Secretary-General Antonio Guterres on the sidelines of the BRICS summit in Kazan. Putin met with all delegation heads attending the summit. The leaders are expected to discuss a wide array of topics.

Full address by Chinese President Xi Jinping to Russian President Putin at BRICS Summit.

FULL VIDEO OF VLADIMIR PUTIN’S SPEECH AT THE MEETING WITH XI JINPING

Many other bilateral meetings of great importance were held like those between China-India and Armenia-Azerbaijan. This feature, important bilateral meetings on the sidelines of the summit, was especially characteristic this time.

Summit begins

On October 22-24, 2024, Kazan will host the 16th summit of BRICS, an informal international association established in 2006 at Russia’s initiative. The forum gathers representatives from more than 30 states, both BRICS members and invited countries. It is expected that the summit will focus on the situation in the world, interbank cooperation and settlements in national currencies. President Putin takes part in the 16th BRICS Summit, which continues the annual program of the Russian 2024 BRICS chairmanship held under the motto “Strengthening Multilateralism for Equitable Global Development and Security.”

The BRICS leaders will exchange views on topical issues on the global and regional agenda, discuss the three main areas of cooperation outlined by the Russian chairmanship: politics and security, economy and finance, cultural and humanitarian contacts.

Representatives of almost 40 countries will take part in the BRICS Plus/Outreach format meeting on the last day of the summit in Kazan, the Kremlin press service reported. The meeting is attended by the heads of the CIS countries, delegations from many Asian, African, Middle Eastern and Latin American countries, as well as the heads of executive bodies of a number of international organizations.

The Kremlin added that special attention will be paid to the possible expansion of BRICS through the planned establishment of a new category of “partner states.” Reports from the heads of the New Development Bank, the Business Council, the Interbank Cooperation Mechanism and the BRICS Women’s Business Alliance will also be heard.

Agenda of the summit

BRICS does not have a headquarters or a charter. It is essentially an informal club or rather a platform for collaboration. The rotating presidency is held by the summit’s host country. Since 2013, the presiding country has been inviting countries close to it geographically and geopolitically to participate in the summits. Regular negotiations are held at the level of foreign ministers, finance, health, education, science and agriculture ministers, and secretaries of security councils.

Since 2015, the BRICS civil, parliamentary and youth forums, as well as media summits have been held. Today there are more than 20 negotiating platforms within the BRICS framework, covering such areas as energy efficiency, climate change, food security, poverty alleviation, sustainable development and the activities of international financial institutions. The practical meeting and negotiation work take place within these platforms as well as in the plenary sessions. The key platforms are: Business, Economic and Financial Activities; Education and science; Culture, sports and health care. Typically, the summit presents also “the declaration”.

Economic platform

Significant developments in respect of mutual payment mechanisms in BRICS countries can be expected after the summit in Kazan, Russian Deputy Foreign Minister Sergey Ryabkov said before the summit. However, no “huge leap forward” should be expected, Ryabkov noted. This is likely to be an evolutionary process because BRICS is working on the consensus basis, he added. “There is a long way from gradual transition from payments in national currencies to creation of a single BRICS currency,” the diplomat noted.

President Putin proposes discussing idea of creating BRICS own economic platform. According to the Russian leader, the goal of this platform is to increase investment flows to the BRICS countries, the Global South and East and to focus on investing in large infrastructure and technology projects in those countries. He also invited all interested countries to cooperate on such projects as the North-South international transport corridor and the Northern Sea Route.

During the BRICS summit in Kazan, Putin hopes to build a new global financial and payment system to shatter USA’s dominance in global finance and protect Russia and its friends from sanctions, The Economist wrote.

In its article “Putin’s plan to defeat the dollar” the magazine recalls that back in June, the Russian Ministry of Finance announced the emergence of the BRICS Bridge platform for settlements in national currencies, including digital ones. Russian Foreign Minister Sergey Lavrov then noted that an alternative BRICS payment system would make it possible to conduct economic transactions to be carried out “without depending on those who decided to make a weapon out of the dollar and the euro.”

When creating this platform, the BRICS countries will likely focus on mBridge, an international payment system that is partially managed by the “stronghold of the Western order,” the Bank for International Settlements (BIS), The Economist notes. China also actively lobbies the idea of ​​an alternative system, the magazine writes. The BRICS Bridge could provide countries in the Global South with cheaper and faster transactions and attract emerging economies. “Putin is hoping to capitalize on this dollar dissatisfaction at the BRICS summit. For him creating a new scheme is an urgent practical priority as well as a geopolitical strategy,” the authors of the article note. BRICS officials held a series of meetings before the summit in Kazan, where they discussed the creation of a credit rating agency and a large insurance company.

When speaking of the long-awaited BRICS payment system, there came out some clues. The topic of a common BRICS currency was raised during the leaders’ conversation but these are not issues for public discussion – Putin’s Aide Ushakov stated. A veteran BRICS reporter Pepe Escobar has the detailed write-up of the progress concerning the various BRICS financial projects “Date with Destiny – BRICS Offers Hope in a Time of War”.

Another assessment by Pepe Escobar can be found I the following video, interviewed by Danny Haiphong. The other professional analysis video by Ben Norton.

Pepe Escobar: Putin’s BOMBSHELL Just Changed Everything as ‘BRICS Pay’ Devastates NATO Sanctions

Danny Haiphong , October 22, 2024

Goodbye, dollar dominance: BRICS plans ‘multi-currency system’ to transform global financial order

Geopolitical Economy Report , Ben Norton, October 17, 2024

The general gist of this issue is as follows:

A single BRICS currency cannot be considered yet, this issue is not ripe yet. De-dollarization is proceeding step by step and the US dollar is still the universal currency. Russia and other states under sanctions are banned and barred from using it. Now 95% of all the external trade of Russia is denominated in national currencies. The US and EU caused this by themselves thinking that Russia and others would collapse but it did not so.

The challenge for a unified BRICS currency is that requires thorough economic integration. Apart from high level of integration among BRICS members, the introduction of a single BRICS currency would involve comparable monetary quality and volume. Otherwise, BRICS will face even bigger problems than those that occurred in the EU. When the euro was introduced in the EU, their economies were neither comparable nor equal.

But Pepe Escobar in his new interview with Danny Haiphong, goes into much clearer detail of precisely every single BRICS financial instrument and payment system currently under development, from BRICS Bridge, to BRICS Pay, an independent BRICS rating agency and insurance underwriting structure, etc. Pepe does state he believes we won’t truly see most of these currency changes until about 2030, which seems to be quite realistic timetable.

New members

Although, taken as a full member of the bloc since the beginning of 2024, Saudi Arabia has not reportedly formalized its participation yet but has been taking part in BRICS meetings. The head of the state, Mohammed bin Salman, was not in Kazan but Saudi’s foreign minister arrived on Oct 24 to Kazan.

In this summit BRICS decided not to admit new members but approve partner status to 13 countries. BRICS leaders at the Kazan Summit have decided not to admit any new members to the group at this time but to grant partner status to certain countries, Iranian Foreign Minister Abbas Araghchi stated.

Araghchi noted that at the Kazan Summit, BRICS states developed criteria for partner status. The top Iranian diplomat emphasized that a consensus among all members is necessary for any country to be admitted to the group. As Russian Presidential Aide Yury Ushakov stated earlier, more than 30 countries have applied to join BRICS, and the prospective expansion of the group will adhere to the partner state criteria defined at the Kazan Summit.

BRICS Declaration

The BRICS summit has adopted a final declaration that contains general assessments of the state of affairs in the world, as well as goals for the long term, President Putin said on October 23. “We have prepared a final declaration, which contains general assessments of the state of affairs in the world, summarizes the results of Russia’s chairmanship of BRICS, and defines guidelines for long-term cooperation … I would like to note that we plan to distribute it to the UN as our common joint document,” Putin said at an expanded BRICS meeting.

The document contains 134 points on 43 pages. Among the main topics are the further development of the association, the position on various global problems, sanctions, demand of the UN and WTO reform, the settlement of regional crises, including in Ukraine and the Middle East.  Key points from the text, here below:

General and political issues

  • Stated the importance of expanding cooperation on the basis of common interests and further developing strategic partnership in the bloc
  • Called for greater participation of the least developed countries, especially in Africa, in global processes and welcomed the strong interest of the Global South in coming together
  • Advocated a multipolar world order and reaffirmed their commitment to multilateralism and to maintaining the central role of the United Nations in the international system and reaffirmed their support for a comprehensive reform of the UN, including the Security Council
  • Called for an immediate ceasefire in Gaza and the release of all hostages without preconditions; called for a nuclear-free zone in the Middle East; condemned Israel’s attack on the infrastructure facilities in Palestine, Iran and Liban; stressed the need for all parties to resume the Iranian nuclear deal; advocated unconditional respect for Syria’s sovereignty; supported the admission of the State of Palestine to the UN within the 1967 borders.
  • Took note of proposals for mediation for a peaceful resolution of the Ukraine conflict through dialogue, expressed concern at the escalation of violence and worsening humanitarian crisis in Sudan and called for a ceasefire.
  • Opposed unilateral measures imposed under the pretext of combating climate change; condemned the terrorist attacks on trans-border energy infrastructure facilities and called for an impartial investigation.

Economic issues

  • Supported WTO reform and opposition to illegitimate unilateral measures and sanctions that could undermine international trade and sustainable development. Supported an open multilateral trading system with the central role of the WTO, with special treatment for developing countries.
  • Welcomed the use of national currencies in financial transactions between the bloc’s member states and their trading partners. Welcomed the creation of a new investment platform that will use the infrastructure of the New Development Bank.
  • Agreed to study the possibility of creating an independent cross-border settlement and depository infrastructure BRICS Clear. Supported the use of alternative currencies within the union’s currency reserve pool.
  • Agreed to study the creation of a single transport platform to ensure multimodal logistics between the countries of the association.
  • Member states would increase the turnover of precious metals according to the Kimberley Process standards and expand the dialogue in the area of ​​technology export control.
  • Called for reform of Bretton Woods institutions, taking into account the increased representation of developing countries.
  • Member states supported Russia’s initiative to create a Grain Exchange that would also cover other agricultural sectors in the future

The final BRICS declaration will be a very important step to strengthen the interaction of the organization’s members, said a representative of the UAE delegation at the BRICS summit in Kazan. “The declaration to be adopted will be an important step to strengthen our interaction, establish a universally recognized framework to face future challenges and achieve our common goals,” Foreign Minister Ahmed Ali Al Sayegh said.

Assessing the summit

First of all, the key issue is simply the optics of the event. Russia and Putin were supposed to be “isolated” and here they are hosting the world’s top leaders on a grand stage, the largest international summit ever taken place in Russia. The BRICS meeting visually represents a roundtable of equals amongst all, which sends a powerful message for the future of global multipolarity and cooperation.

That’s not to mention it was chosen for a symbolic date, as Putin explained, with the original founding UN Charter being signed on October 24, 1945. It is clear the organizers of the BRICS summit foresee this pivotal time as being an epochal shift in the global world order similar in weight to that of the UN founding.

The story of this summit may be something like this:

  • No real overt changes were taken on this summit
  • No new members were yet inducted
  • Not announced a major “BRICS currency”   

However, thirteen “partner countries” were given such preliminary status as to prepare them for full membership in the future. There are some concrete measures already being taken or planned like a BRICS grain exchange announced by Putin, which “will promote fair and predictable price indicators for products and raw materials”. This grain exchange will later be turned into a general product exchange, which is a precursor to getting an inter-BRICS currency system to eventually work and replace the dollar.

The main focus of the summit seems to be on political, international, medium/long term developments aiming for changing international system from the current western “rules-based order” to multipolar and multilateral order, led and headed by Russia and China.

Iran was given a renewed legitimacy and dignity on the world stage, particularly as new president Masoud Pezeshkian was visiting Russia for the first time and met, on the sidelines of the summit, numerous heads of states. The similar characteristic can be mentioned about Venezuela’s president Maduro.

India’s Modi and China’s Xi made a historical contribution in their bilateral relations, achieving consensus on border disputes. This mutual understanding also imply that India moved some steps away from the US sphere of influence towards the East camp.

India’s making nice with China and its shunning of the US, is an immense geopolitical shift. The two biggest countries of this planet by populations plus Russia, the biggest country by landmass, are again friendly to each other. They will coordinate their moves wherever it is in their tri-lateral interest. This shift in relations will have similar huge consequences as the recent reestablishment of relations between Saudi Arabia and Iran. This is a disaster for the US “pivot to Asia” but the western media have barely reported on it.

Another significant event was that Armenia’s Pashinyan and Azerbaijan’s Aliyev managed to clearly promote bilateral relations.

A big topic was also that Turkey officially applied to join the BRICS. Ankara would be the first NATO member state to join the BRICS economic alliance that has been dubbed the alternative to the US dominated world of international trade. Turkey’s interest in BRICS is driven by both political and economic factors.

Its proactive foreign policy, emphasizing a balanced approach between East and West, forms the political rationale. On the economic side, the growing clout of BRICS countries offers Turkey opportunities to deepen its trade relations, access new export markets and attract diversified investment sources for long-term growth. Now that Turkey was accepted as a new “partner country”, which confirms Turkish way to full membership later, this may cause various tremors in the NATO structure.

Approving a partner status to 13 countries, was politically significant, strategic, long-term decision. Some of those countries will have a big role on the international scene of this century. Besides Turkey, such countries may be Indonesia, Kazakhstan, Malaysia, Nigeria and Vietnam.

This summit will have significant impacts on global geopolitics – possibly changing global power structures in some way. As the Kazan Declaration made clear, the multipolar reality can no longer be ignored, as new centers of power are gradually forming. The event brought together not only delegations from BRICS member countries but also from candidate countries and even from countries that have not applied to join the group but are open to cooperating in some way with the member countries.

An important aspect of BRICS is that it is an aggregating group, where all countries are welcome to cooperate to some extent. The group expressed itself jointly as a united bloc with a common political agenda, which is the creation of a multipolar order.