Русский
The Russian President, Vladimir Putin, gave a speech at the main Plenary session of the BRICS 2025 annual Heads of State summit currently being held in Rio de Janeiro. In it, he discussed the BRICS growth, economic data, global payment systems and several potential new initiatives including the creation of a BRICS carbon trade mechanism, grain exchange, logistics centre, climate change as well as a BRICS trade arbitration centre and tax secretariat. President Putin’s comments are prefixed VP, our analysis is prefixed RPA. This is what he had to say:
VP: “I would like to join the words of gratitude to President Lula da Silva and the Brazilian Chairmanship for their active efforts in advancing the strategic partnership within BRICS.
It is important that the BRICS countries continue to deepen their cooperation across key sectors in politics, security, the economy and finance, cultural and humanitarian contacts. This group has significantly grown and now includes leading states in Eurasia, Africa, the Middle East, and Latin America. Together, we possess a vast political, economic, scientific, technological, and human potential.
The BRICS countries account for not only a third of the Earth’s landmass and almost half the planet’s population, but also for 40% of the global economy, while their combined GDP at purchasing power parity now stands at US$77 trillion. This is the 2025 data according to the IMF. The BRICS is substantially ahead of other groups in this parameter, including the G7 with US$57 trillion.”
RPA: The shift in global economic dynamics isn’t just financial. The G7 accounts for about 10% of the global population, (820 million) with the BRICS (including partners) possessing about 4.4 billion. In terms of growth, estimates from PWC put the G7’s GDP growth at less than 2% for the coming five years, with BRICS growth averaging 5-6%.
VP: “Year after year, our group’s global authority and influence continue growing. BRICS has rightfully established itself as one of the key centres of global governance, with our collective voice in support of the global majority’s vital interests resonating ever more powerfully across the international stage.
BRICS has many supporters in the Global South and East. The culture of an open partnership and cooperation, mutual respect and consideration for each other’s interests in the group appeals to them. Based on this, in October 2024, we decided to establish a category of BRICS partner states, to develop ad hoc practical cooperation with all interested countries. BRICS has ten partner states to date.”
RPA: The BRICS now includes ten full member states with voting powers: Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, South Africa, and the UAE. BRICS partner states do not have voting rights but do contribute. These include Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan and Vietnam. In addition to these, several countries are paid up shareholders of the BRICS New Development Bank but not yet members of BRICS. These are: Algeria, Bangladesh, Colombia and Uruguay.
It should be noted that most of these nations are significant players in their respective regional free trade and economic zones. Ethiopia for example is a substantial economy within COMESA while Bolivia the same within the Andean Community, meaning they have important additional regional economic influence.
VP: “I will stress that the BRICS countries represent different development models, religions, authentic civilisations and cultures, while unanimously upholding equality and neighbourliness. They prioritise traditional values, the high ideals of friendship and accord, striving to contribute to global stability and security, the prosperity and success of all nations. Without doubt, this constructive approach and unifying agenda are highly relevant amidst the geopolitical challenges of today.
We all see that the world is experiencing tectonic shifts. The unipolar system of international relations that once served the interests of the so-called golden billion, is losing its relevance, replaced by a more just multi-polar world. Global economic patterns are changing faster. Everything indicates that the liberal globalisation model is becoming obsolete while the centre of business activity is gravitating towards developing markets, launching a powerful growth wave, including in the BRICS countries. To maximise the emerging prospects, it is important to intensify cooperation within the group, primarily in technology, effective resource development, logistics, insurance, trade and finance.”
RPA: The BRICS differs from traditional trade blocs as there are no set trade regulations between them, with each country free to agree pertinent bilateral tariffs. This allows for much more flexibility over trade on a need-by-need and reaction-based basis, which is important during this turbulent global trade era (such as the US President suddenly hiking tariffs. Trump has threatened 10% tariffs on the BRICS if they pursue ‘anti-US trade policies’). What this means is that trade mechanisms are being prioritized over tariff-based mechanisms to facilitate the practical application of trade, including some financial structures. In this way the BRICS is developing as a different type of trade grouping based on infrastructure solutions first, and members tariff preferences remaining a sovereign, rather than a collective issue. This is a fundamentally different approach to trade blocs such as the European Union.
VP: “It is important to continue expanding the use of national currencies in mutual payments. It is believed that creating an independent payment and monetary system within BRICS will expedite currency transactions while also ensuring their effectiveness and security. Furthermore, using national currencies in trade within BRICS is steadily growing. In 2024, the share of Russia’s national currency, the ruble, and the currencies of our friendly states in transactions with Russia and other BRICS countries reached 90%.
Multiplying mutual capital investment by the BRICS countries, including through BRICS mechanisms, primarily, the New Development Bank appears to be an important goal as well. To this end, Russia proposed creating a whole new BRICS investment platform. The idea behind it is to jointly develop coordinated instruments to support and to bring in the funds from the economies of BRICS countries and from the Global South and Global East countries.”
RPA: We previously discussed the new BRICS “Multilateral Guaranteed Investment Fund” here.
VP: “Importantly, our Brazilian colleagues were receptive of the initiatives put forward during Russia’s chairmanship last year and continue to implement them. These include launching a special mechanism for holding consultations on World Trade Organisation matters, creating a grain exchange, a climate research centre, a permanent logistics platform, and a sports cooperation programme. These are all moving forward.
Please note that there are other valuable ideas proposed by Russia, which include the formation of a carbon market partnership, an arbitration investment centre, a fair competition platform, and a permanent tax secretariat within BRICS. We count on our BRICS colleagues supporting these promising initiatives.”
RPA: These are important developments, and as mentioned earlier create a loose, yet tight platform which facilitates, rather than rigidly determines trade. To some extent the BRICS are replacing elements of the WTO’s remit with its own in view of the issue that the WTO has effectively been sidelined by Western nations in the race to impose tariffs and take other unilateral actions without reference to a global arbitrary body. To this end the reference to the WTO is an interesting one, suggesting that basic WTO regulations will continue to form part of the BRICS remit going forward. As BRICS is set to be responsible for over half of total global trade by 2030, the implication is that BRICS will follow WTO-based resolutions amongst its members and partners, leaving western trade to be arbitrated by the United States, with all the implications of this.
VP: “One more thing. In September, Moscow will host Intervision, a popular international television song contest which has got the attention of numerous performers from BRICS and BRICS partner countries who confirmed their willingness to participate in it. A humanitarian project of that magnitude is designed to promote universal, cultural, family, and spiritual values shared by our countries.
I would like to close by thanking our colleagues from the BRICS member states for their productive and constructive interaction. We believe that the Rio de Janeiro Summit final declaration, which is ready for approval, provides a good premise for further joint work in the spirit of continuity and equal cooperation which is characteristic of BRICS.
Thank you.”RPA: As can be seen, the BRICS movement remains vibrant and is gaining in trade infrastructure and enhancement mechanisms, without resorting to a rigid tariff and customs duty regime, a distinction often missed by its critics. Putin mentioned several new initiatives are being developed, with the carbon trading issue of significance – Brazil, China, India and Russia are all among the world’s top six emitters (the United States and European Union being the others). The proposed BRICS arbitration centre will be of note to future bilateral and multilateral trade agreements and contracts, while the development of a permanent tax secretariat suggests a multilateral BRICS coalescence towards certain dutiable items – either preferential or non-preferential in order to better regulate the desired movement of traded goods amongst the BRICS is an emerging concept. These are symptomatic of a developing group, and not, as many in the west have determined, a dysfunctional one.
