Russia Fights Western Isolation Efforts with BRICS Summit

The three-day event will seek to talk about?two major wars and global dependence on the U.S. dollar-dominated banking system.

On Tuesday Russian President Vladimir Putin is hosting the annual BRICS summit in Russia’s southern western city of Kazan.

What is BRICS

BRICS stands for Brazil, Russia, India, China, and South Africa. The groups started in 2006, and Brazil, India, and China convened for the first BRIC summit in 2009. South Africa joined a year later.

The alliance aims to challenge the West's economic and political monopoly. The groups set priorities during the summit, which members take turns hosting.

?What is on the?Summit Agenda?

?

The central theme that unites BRICS members is their cynicism toward Western-led institutions of global governance, especially regarding the economy.

One of the summit's aims will be to?speed up ways to reduce the number of dollar transactions, easing the US ability to use threat sanctions to seek?to impose its political will.

In 2023, Lula planned a trading currency for BRICS members. Then experts have advised that any such initiative might be riddled with challenges.

In August, India’s Minister of External Affairs S Jaishankar also doubted the realistic of a BRICS currency.

?Membership of BRICS

The BRICS alliance comprises ten nations: Brazil, India, China, South Africa, Iran, Ethiopia, Iran, Egypt, Saudi Arabia, and the UAE.

India-Russia Strategic Partnership.

Prime Minister Narendra Modi receives a warm welcome as he lands in Kazan Russia. He is attending the 16th BRICS summit held under the Chairmanship of Russia.

The two leaders met today in Kazan, Russia. After a handshake and a hug, PM Modi and Putin held India-Russia talks.

Importance friendship between Prime Minister Modi and President Putin said that the?bond between the two countries and the two leaders is so strong that PM Modi would understand him even without the help of a translator.

President Putin also hailed Russia and India's “privileged strategic partnership” and vowed to build further ties further.

Mediating Peace Between Russia and Ukraine

In his opening statement during his meeting with Vladimir Putin, PM Modi said he wanted the Ukraine conflict to be resolved “peacefully and quickly” adding that “We have been in constant touch over the conflict between Russia and Ukraine”

The Prime Minister further said “We believe that disputes should be resolved peacefully. We support efforts to quickly restore peace and stability”

PM Modi visited Kyiv in August and Moscow in July to encourage talks as India cast itself as a potential mediator.

PM Modi visited Kyiv in August and Moscow in July to encourage talks as India cast itself as a potential mediator.

In both countries, he was welcomed with a warm embrace. During his meeting with President Zelensky, Prime Minister Modi reiterated his commitment to peace and sustainable development.

Modi-Xi Jinping Bilateral

?Prime Minister Narendra Modi held bilateral talks with Chinese President Xi Jinping for the first time in five years on the sidelines of the BRICS Summit in Russia’s Kazan.

The meeting came days after two Asian giants announced a border accord to end the four-year-old standoff in Ladakh.

Relations between the world’s two most populous nations both nuclear powers have been strained.

Since a clash between their troops on the largely un-demarcated frontier in the Western Himalayans left 20 Indian and four Chinese soldiers dead in 2020.

India announced on Monday that the?two countries agreed to a pact on the resumption of military patrols along the Line of Actual Control.

?Foreign Secretary Vikram Misri said the pact will lead to the “disengagement” of the troops at LAC.

?China confirmed the agreement a day later saying the?two sides had reached resolutions related to their border.

?During the meeting, Prime Minister Modi welcomed the India-China border agreement and Xi Jinping called for both nations to enhance communication and cooperation.

Putin's Stance on Dollarization

Russian President Vladimir Putin made it clear at the summit that the BRICS nations are not outright rejecting the US dollar but are preparing an alternative if access to it continues to be restricted.

On Wednesday the BRICS nations formally endorsed the settlement of cross-border payment in local currencies making a vital step toward reducing dependency on the US dollar.

This system aims to counterpart existing financial market mechanisms while promoting the use of local currencies for international trade.

?BRICS nations do not as of yet have their specific digital currency, but a?BRICS blockchain-based payment system?is in the works, according to Kremlin aide Yury Ushakov in March 2024.

?Known as the BRICS Bridge multisided payment platform, it would connect member states' financial systems using payment gateways for settlements in central bank digital currencies

The planned system would serve as an alternative to the current international cross-border payment platform, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system, which is dominated by US dollars.

“We believe that creating an independent BRICS payment system is an important goal for the future, which would be based on state-of-the-art tools such as digital technologies and blockchain.

The main thing is to make sure it is convenient for governments, common people and businesses, as well as cost-effective and free of politics,” Ushakov said in an interview with Russian news agency TASS.