Isolated Putin says trade with China and India is increasing

Isolated Putin says trade with China and India is increasing

Russian President Vladimir Putin is seen here during a meeting with Chinese President Xi Jinping weeks before the launch of Russia’s unprovoked attack on Ukraine. During the meeting, both countries signed a “pact without limits”

Anadolu Agency | Anadolu Agency | fake images

In a transparent bid to end his international isolation following the Ukraine war, Russian President Vladimir Putin has called for stronger ties between the BRICS, the bloc of five developing countries that includes China and India.

On Thursday, the leaders of Brazil, Russia, India, China and South Africa will hold their group’s 14th annual meeting. Addressing a business forum virtually a day earlier, Putin denounced the international sanctions imposed against his country, calling them “politically motivated.”

In his opening speech on Wednesday, Chinese President Xi Jinping echoed that sentiment and attacked the use of sanctions.

Politicizing the global economy and turning it into one’s tool or weapon, and deliberately imposing sanctions using one’s leading position in the international financial and monetary systems, will only end up harming one’s own interests and those of others, and inflicting suffering on all. Xi said, according to a transcript from English-language state media. He did not name the United States in his statement.

Putin also stated that the BRICS economies are seeking to create an international reserve currency using the basket of their own currencies.

“The Russian Financial Messaging System is open for connection with the banks of the BRICS countries. The Russian MIR payment system is expanding its presence. We are exploring the possibility of creating an international reserve currency based on the basket of currencies BRICS,” he said. , according to an official English-language Kremlin transcript.

Putin’s comments come after Russia was cut off from the SWIFT interbank messaging system as part of the sanctions.

China has put much more energy into the Brics summit. China is isolating itself internationally after Ukraine and is looking for counterweight blocs.

james crabtree

Executive Director, IISS-Asia

Putin pointed out that the total international reserves of the BRICS countries this year amount to about 35% of world reserves. He also said that trade between the Russian Federation and the BRICS countries increased by 38% to reach $45 billion in the first three months of 2022.

The Russian president also said that there are also coordination plans to “develop transport infrastructure, rebuild logistics routes and create new production chains.” Putin said there are ongoing discussions about opening Indian chain stores in Russia and increasing the share of Chinese cars and other vehicles in the Russian market.

“Russia’s presence in the BRICS countries is growing. There has been a noticeable increase in Russian oil exports to China and India. Agricultural cooperation is developing dynamically,” Putin said.

chinese paper

Still, James Crabtree of the International Institute for Strategic Studies said China was the driving force behind this year’s BRICS meeting. China is looking to BRICS to gain influence on the international stage, said Crabtree, executive director of IISS-Asia.

“China has put much more energy into the BRICS summit. China is isolating itself internationally after Ukraine and looking for counterweight blocs,” she told CNBC’s “Street Signs Asia.”

China and Russia signed an “unlimited” partnership weeks before the Ukraine war. Beijing has not denounced Moscow’s aggression despite widespread condemnation from the West. In fact, none of the BRICS nations have spoken out against the Russian invasion, only issuing vaguely worded calls for peace through negotiations.

But the bloc’s effectiveness is undermined by the fact that it isn’t fully united, Crabtree noted.

“One of the problems with the BRICS is that it’s divided internally. China and Russia agree with each other, but there’s also India and Brazil, who tend to be quite skeptical of China,” he said, adding that this limits what what the group can do.

China would also like to expand the group to include countries such as Mexico, Saudi Arabia and Turkey, Crabtree said.

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