Russian President Vladimir Putin has said that the BRICS role in global economic affairs will continue to strengthen
The Russian president’s speech in Kazan focused on the group’s financial integration and new development prospects
Russian President Vladimir Putin addressed a meeting of leaders at the BRICS Summit in Kazan on Wednesday. In his speech, he focused on the growing role and prospects of the economic group, and warned about the risks to the global economy due to Western sanctions and protectionist policies, among other things.
Putin also announced Russia’s initiatives within the BRICS framework, including the formation of a grain exchange and a new investment platform.
Here are the key takeaways from the president’s address.
Multipolar world order being formed
In his opening remarks to the extended-format BRICS meeting, the Russian president said world trade and the global economy as a whole are undergoing significant changes. The center of business activity is gradually shifting towards developing markets, he added. “A multipolar model is being formed, which is launching a new wave of growth, primarily due to the countries of the Global South and East – and, naturally, the BRICS countries.”
The economies of BRICS countries have been demonstrating “sufficient stability” due to the responsible macroeconomic and fiscal policies of their governments, the Russian leader said, noting that in most BRICS countries, accelerated growth rates are expected in the medium term. Putin cited preliminary estimates that the BRICS’ average growth in 2024-2025 will be 3.8%, compared to global growth of 3.2-3.3%.
He also said that the BRICS countries’ share of global GDP in terms of purchasing power parity (PPP) will amount to 36.7% by the end of 2024 and will continue to expand. Meanwhile, the share of the Group of Seven (G7) leading Western economies is projected to account for slightly above 30%.
“The trend for the BRICS’ leading role in the global economy will only strengthen,” Putin said, citing population growth, capital accumulation, urbanization, and increased labor productivity, accompanied by technological innovations as key factors.
West’s unilateral sanctions and debt burden
The Russian president warned of a potential new global crisis, citing the growing debt burden in developed countries, unilateral sanctions, and protectionist policies as key threats. “These factors are fragmenting international trade and foreign investment, particularly in developing nations,” Putin said.
He also pointed to high commodity price volatility and rising inflation, which are eroding incomes and corporate profits in many countries. Putin’s remarks also highlighted concerns over escalating geopolitical tensions and their impact on global economic stability.
The Russian leader said that to fully realize the potential of the BRICS countries’ growing economies, the member states should intensify cooperation in areas such as technology, education, efficient development of resources, trade and logistics, finance, and insurance, as well as increasing the volume of capital investment many times over.
“In this regard, we propose creating a new BRICS investment platform, which would become a powerful tool for supporting our national economies and would also provide financial resources to the countries of the Global South and East,” Putin said.
BRICS-based grain exchange
The Russian leader also proposed the creation of a common BRICS grain exchange to protect trade between members of the group from excessive price volatility. He noted that a number of BRICS countries are “among the world’s largest producers of grain, vegetables, and oilseeds.” It could later be expanded to trade in other major commodities such as oil, gas and precious metals, Putin said.The initiative is aimed at helping to protect national markets from negative external interference, speculation and attempts to cause an artificial shortage of food products, according to Putin.
AI alliance of BRICS
Russia is also proposing a BRICS alliance in the field of artificial intelligence. The goal is to regulate AI technologies in order to prevent their illegal use. “In Russia, the business community has adopted a code of ethics in this area, which our BRICS partners and other countries could join,” Putin said.
The president also spoke about increasing transport connectivity between BRICS countries, saying this could provide additional opportunities for growth and diversification of mutual trade.
“Such promising projects as the formation of a permanent BRICS logistics platform, preparation of a review of transport routes, opening of an electronic communications platform for transport, and establishment of a reinsurance pool are being discussed,” Putin said.
The issues related to the transition of the global economy to low-emission development models are very important, according to the Russian president. The BRICS contact group on climate and sustainable development is closely involved in this work and will continue to counteract attempts by some countries to use the climate agenda to eliminate competitors from the market, he said. “We consider the initiatives on the BRICS partnership on carbon markets and the climate research platform to be promising,” Putin concluded.
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