Russia’s Putin Proposes New Financial Framework for BRICS

Vladimir Putin, the President of Russia, has advocated for a new financial strategy within the BRICS alliance, promoting the use of national currencies in trade. During the 17th BRICS Summit, he introduced the concept of an “independent settlement system” on the BRICS platform, intending to expedite and secure financial transactions among member states. Putin stressed the importance of increasing the use of national currencies in settlements. He emphasized the advantages of creating a dedicated settlement and depository system within BRICS, aiming to make currency transactions more efficient and secure. Putin cited the rising use of national currencies among BRICS members, highlighting that 90 percent of Russia’s settlements with other BRICS nations in 2024 were conducted in rubles and other friendly currencies. Putin also proposed boosting reciprocal capital investments within the BRICS framework and suggested creating a new BRICS investment platform. The aim of this platform is to foster instruments for attracting funds from BRICS economies and those of the Global South and East. Putin further highlighted the necessity of strengthening cooperation in key areas, including politics, security, economics, finance, and cultural and humanitarian efforts. He recognized the expanded scope of the BRICS association, now encompassing major states from Eurasia, Africa, the Middle East, and Latin America, with a collective strength in political, economic, scientific, and technological potential. The 17th BRICS Summit addressed topics of peace, security, global governance reform, and future cooperation across various sectors. Critical international matters were also discussed.