/ world today news/ Almost simultaneously, two countries, very different in their economic weight, decided to get closer to BRICS. Saudi Arabia has started negotiations to join the BRICS bank. And Venezuela claims full membership in the club. After that, the Russian Federation Council even warned the BRICS against “unbridled expansion” because it could become difficult to find agreement in this club. Are such fears justified?
The annual meeting of the Board of Governors and the Board of Directors of the New Development Bank (NDB), established by the BRICS countries, officially opened in Shanghai on Tuesday. “The goal for the future is clear to us. We need to expand the scope of our activity and strengthen the bank’s role as a platform for cooperation,” the bank’s new head, former Brazilian president Dilma Rousseff, said at the ceremony. BRICS, we recall, includes five countries: Russia, Brazil, India, China and South Africa.
The head of the Russian Ministry of Finance, Anton Siluanov, also spoke at the ceremony. According to him, the past year has seen how the traditional system of international development institutions and financial relations can quickly collapse, creating additional risks and costs around the world. “Unfortunately, in the new reality, development interests fade into the background, giving way to politics,” the minister complained. “The task of BRICS is to unite, not to divide,” he added.
At the same time, the NBR should remain open to accepting new members, Siluanov added, apparently alluding to Sunday’s news that Saudi Arabia, a financial powerhouse, had begun talks to join the bank.
According to the Russian parliament, the possible expansion of the BRICS “is perceived in the US and in the entire Washington coalition as nothing more than a second front against them. They no longer view the global world differently.” This was said by Andrey Klimov, Deputy Chairman of the Committee on International Affairs of the Federation Council.
The senator suggested that the countries that wish to gradually get closer to BRICS should join the work of the association in various formats. “A formula has emerged that, in my opinion, is perfect for the current situation – it is BRICS plus. That is, BRICS remains, and some other countries somehow gravitate towards it, working in different formats, for example, on technological sovereignty, on political solutions,” Klimov believes.
“The opportunities to connect with the BRICS group itself are very diverse and numerous. But I don’t trust whether this will mean an unbridled expansion of this group,” the deputy admitted. The current construction is based not only on the sovereign equality of the countries, but also on the position of each of the countries, Klimov recalled and added: “The more new full BRICS members there are, the more difficult it will be to comply with this principle.”
In turn, the Kremlin said BRICS participants would discuss joining new countries to this format, including Venezuela. “Over the past year, more and more countries have shown great interest in this format, more and more countries have announced their intention to focus on connecting with it,” commented Dmitry Peskov, Kremlin press secretary.
“I think that Senator Klimov has little idea how the processes in geopolitics and the world economy will develop in the next 20 years. They will not be like what happened in the previous 40 years”, commented the economist Vasiliy Koltashov. “BRICS is not a military bloc. This is a club whose decisions are not binding. This is a club that includes serious independent players who are in opposition to the G7,” he added.
Yes, Venezuela is a weak player economically, but it has an internal strength that makes it very different from many other countries. In the context of the crisis in the UN and against the background of Washington’s aggressive behavior, the formation of such a new type of club should only be welcomed. So I see no problem with Venezuela joining. The prestige of BRICS is growing, correspondingly, the authority of Russia in the world is also growing, as it is in symbiosis with the influence of BRICS, Koltashov clarifies.
“The meaning of the G-7 is that it is ‘seven and no more.’ It is a closed club of the rulers of the world, in which there is actually only one true ruler – that is Washington. The rest are dependent players. BRICS demonstrates a different approach. This club brings together strong countries focused on free trade relations. That’s why it expands. This is a bloc of world economic leaders, each of which conducts an independent economic policy independent of American capital,” explained the economist.
With the very existence of their union, the BRICS countries seem to remind Washington on a daily basis that they are a market, but nothing more, adds Koltashov. “For a hegemon this is intolerable, even more so for a declining hegemon. The US is the source of imbalance, and accordingly BRICS is the source of balance in the world economy. Economic growth now depends more on the BRICS than the US. Only the recession depends on the US. They generate problems. And who will generate growth? This is how BRICS will be,” the interlocutor summarizes.
“Yes, the influence of BRICS in the world is growing – both economically and politically. These things are interconnected. But BRICS is not only Russia, it is also India and China. First of all, Beijing’s influence is growing,” objected State Duma deputy and economist Mikhail Delyagin. “Especially after Saudi Arabia entered into significant negotiations on mutual trade in yuan. And I didn’t hear about the rubles. Yes, this train is moving. We can join him if we can,” he added.
On Monday, Venezuelan President Nicolas Maduro announced his country’s desire to “become a modest part of BRICS and keep pace with the changing geopolitical order.” The Bolivarian leader said this during a joint press conference with his Brazilian counterpart Luiz Inacio Lula da Silva. In addition, Lula da Silva immediately spoke in favor of Venezuela joining this union.
According to Maduro, BRICS can help form South American unity. He noted that the association like a magnet “attracts countries seeking peace and cooperation” and added that more than 30 countries have already sent their requests to join BRICS.
On Monday, NBR officials told the Financial Times that Riyadh had begun negotiations to join the bank as a new, ninth member. “In the Middle East, we attach great importance to the Kingdom of Saudi Arabia and we are currently conducting a competent dialogue with them,” bank representatives said. The publication notes that the kingdom’s accession would strengthen Riyadh’s ties with the BRICS countries.
As Vedomosti recalls, eight countries are already members of the BRICS bank. The authorized capital of the bank is 100 billion dollars, and its purpose is to finance infrastructure projects in BRICS countries and developing countries. In 2021, the bank welcomed four new members: Bangladesh, Egypt, the United Arab Emirates and Uruguay.
And next year, the BRICS presidency will pass to Russia.
Translation: V. Sergeev
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