Русский
The Russian Foreign Minister, Sergey Lavrov, has been representing Russia at the BRICS 2025 Heads of State annual meetings in Rio de Janeiro. He spoke at a session themed “Strengthening the Multilateral World Order, Financial and Economic issues, & Artificial Intelligence.” Lavrov’s comments mainly focused on the current state of the global economy, the need for reform at the World Bank, IMF and WTO, and touched upon AI.
His comments are prefixed SL, ours are prefixed RPA. This is what he had to say:
Multilateral World Order
SL: “Strengthening the multilateral world order while the international system goes through fundamental transformations is one of the crucial tasks for BRICS and for the entire international community. Multipolarity is not a choice, but rather an objective reality which succeeds the outdated neoliberal model that was built on neocolonial practices. The traditional paradigm of globalization where the predominant role is played by the so-called developed states of the West is becoming a relic.
Economic crises of recent decades have been the first signs of this model’s malfunctions. The COVID-19 pandemic exposed countless disadvantages of the global trade and finance system and accelerated its fragmentation. The erosion of the global economic world order has exacerbated as a result of illegitimate, unilateral sanctions and use of the US dollar as a means of ‘punishment’. The trust in the American currency as a formerly reliable payment instrument has been undermined.
Another negative factor is the rapidly growing debt burden. Since 2011 the number of highly indebted states rose from 22 to 59. Today developing countries are spending on debt service more than they invest into their development. The situation is going out of control even in developed states – the US has seen a record level of sovereign debt, which has now reached US$37 trillion and continues to grow.
Therefore, it is not surprising that the global majority is interested in creating development mechanisms independent from the West. Countries of the Global South and East are becoming a main driving force of the global economic growth. Regional organizations such as the African Union, CELAC, ASEAN, SCO, and the EAEU are all playing an increased role. In this context conceptual and practical approaches are being developed to establish a new architecture of world economy based on the principles of equality, multilateralism and non-discrimination in trade, financial settlements, technology, logistics. In the face of the challenges of digitization and AI a special attention is given to human investment.
Nowadays, the BRICS stands as an engine of such transformation, which seeks to create a more stable global economic architecture based on the principles of universality, transparency, non-discrimination and equal access to available opportunities and instruments. BRICS countries account for more than 40% of the global gross domestic product based on purchasing power parity, and together with partner countries this figure is at 45% or US$93 trillion. Today, BRICS represents more than 24% of global trade and almost half of the world’s population.”
RPA: For clarity, Lavrov quoted different economic statistics to Vladimir Putin, whose speech referenced BRICS at a 40% value of the entire global economy. Lavrov’s quotes focused purely on the trade volume aspect.
SL: “As a follow-up to the agreements made at the BRICS Summit in Kazan in 2024, we have been working on projects to create a Cross-Border Payment Initiative, independent settlement and depositary infrastructure, to develop reinsurance capacity, to increase the effectiveness of special economic zones. The mechanism of the Contingent Reserve Arrangement, including the use of currencies alternative to dollar, is being improved. The share of BRICS countries in trade with Russia is constantly growing and in 2014 it exceeded 48%, with 90% of mutual settlements made in national currencies.”
RPA: These measures are ushering in a financial platform that bypasses the use of the US dollar in non-US dollar trade and will ultimately result in the ushering in of a separate financial payments mechanism that also bypasses SWIFT. In essence, BRICS is creating financial settlement options to the established, western controlled infrastructure.
SL: “To deliver on these goals it is of significant importance to pursue the reform and depolarization of the Bretton-Woods institutions which should reflect a real state of affairs in the world economy. The continued use of the IMF and World Bank with a view to preserve neocolonial practices is unacceptable.
A similar situation is unfolding in the WTO as well. Years-long blocking of the WTO dispute-settlement body and introduction of new discriminatory measures against developing countries such as the EU Transborder Carbon Adjustment Mechanism inflict serious damage to global trade. In 2024 an informal BRICS mechanism of consultations on WTO was launched, which is developing successfully under the Brazilian Chairmanship. We look forward to an early harmonization of common positions and start of their practical implementation.”
RPA: The EU system mentioned has come under increasing criticism for allowing EU nations to buy carbon credits from developing countries and use these to continue to emit high volumes.
SL: “Development finance issues are becoming increasingly pressing. According to the UN, development finance deficits are estimated at US$4.2 trillion dollars every year. If the current trends prevail, more than 600 million people will live in extreme poverty by 2030. Without sufficient funds and being unable to take out credits on acceptable conditions, countries of the Global South have to rely on official development assistance. Given the Western double standards, this provision depends on political considerations. For example, in 2023 the IMF approved an unprecedented credit for Ukraine worth US$15.6 billion (577% of Ukraine’s country quota). It makes up more than a third of annual volume of all IMF programmes. Since the beginning of 2022 the World Bank has pledged to allocate nearly US$54 billion for Ukraine. In total these sums allocated to Ukraine are twice as much as annual volumes of assignations allocated by the Bretton Woods structures to all African countries.
The increasingly aggressive attempts by the West to introduce ideological ultimatums into the dialogue as what are virtually the main criteria – based on Western interpretations of human rights and democracy – are having an extremely negative impact on the delivery of the UN sustainable development goals.”
RPA: Lavrov’s point on the west’s funding for Ukraine will have hit home in the Global South. What is increasingly being seen as a European problem is now revealed to be additionally diverting funds away from where it is most needed, therefore indirectly punishing developing nations for the west’s insistence on supporting Kiev.
SL: “To address imbalances and to mobilize resources for development Russia introduced an initiative to create within BRICS a New Investment Platform with the participation of the New Development Bank (NDB). We thank colleagues for showing their interest to the promising initiative. Its implementation will be facilitated by our joint efforts to turn the NDB into an innovative development institution that is oriented towards the needs of its own stakeholders and that is not subject to the influence of external conjuncture. Increasing the number of stakeholders will strengthen the potential of this mechanism and contribute to the expansion of its geography of operations.”
RPA: This new fund is to be guaranteed by BRICS members and will provide the opportunity for developing members to access alternative sources of finance at lower rates than is generally provided by the western-controlled World Bank and the International Monetary Fund.
Artificial Intelligence
SL: “Artificial Intelligence is becoming a critical technology. Experts estimate that AI contribution to the global domestic product will be at US$20 trillion by 2030.”
RPA: The total value of global GDP by 2030 is expected to be about US$130 trillion.
SL: “We will need to address issues related to ensuring universal access to advance developments in this field. Secret initiatives put forward by a number of countries and with restricted participation with a view to promote non-consensus approaches are fraught with the most serious consequences. The attempts to artificially isolate sovereign States from global processes are extremely dangerous and doomed to failure. A response to such attempts was the harmonization of the BRICS Joint Statement on Global Governance in the field of Artificial Intelligence which reflects our common position regarding the central role of the UN in developing universally recognized regulation mechanisms in this field.
The challenges associated with the development of digital technologies are transnational in nature and require a collective response. The prime example is the adoption of the UN Convention on Cybercrime last year, which will be opened for ratification this coming October”.
RPA: It will be interesting to note which UN members ratify this document. Lavrov’s words suggest that Russia is anticipating some resistance.
SL: “I am convinced that BRICS, together with like-minded countries will continue to lead in promoting a just multipolar world order that will provide favourable conditions for sustainable development of all States without exception. In this work we receive assistance from BRICS Business Council and BRICS Civil Council, Women’s Business Alliance, to which I would like to express my appreciation and wish them every success.
RPA: Lavrov’s comments were more targeted at the level of Global institutions and the need for reform, and will have been expressly delivered for BRICS countries to take note. Key here are the voting mechanisms for reform at the UN, World Bank, IMF and WTO which are heavily skewed against any major structural change: much of the voting power lies, under previous structural agreements, with western countries. To change this requires substantial support. Lavrov’s speech was mainly aimed at identifying the need for this to become a common theme throughout the BRICS, and follows the same strategy in speeches delivered to other multilateral bodies.
Further Reading
Lavrov Heads Russian G20 Delegation In South Africa, Says G7 Has Become Irrelevant
