Eurasia Press & News
The recent expansion of BRICS presents considerable geopolitical ramifications, particularly for Russia, which has leveraged its membership to mitigate the economic and political isolation enforced by the United States and NATO since the commencement of the Russia-Ukraine conflict.
The strategy employed by Russia to utilize BRICS as a countervailing bloc has garnered significant momentum, particularly in light of Western sanctions that have compelled Moscow to pursue financial systems and trade routes that operate independently of the U.S. dollar. In the course of this expansion, Russia secures not only economic allies but also geopolitical partners who possess a shared interest in contesting the prevailing Western-dominated global order.
The BRICS encompasses roughly 30% of the global landmass and constitutes 45% of the world’s population. South Africa is recognized as the foremost economy within the African continent, whereas Brazil, India, and China are positioned among the top ten nations worldwide concerning population, land area, nominal gross domestic product (GDP), and purchasing power parity. The five founding member states collectively possess a nominal GDP of US$28 trillion, representing approximately 27% of the global gross product. Their aggregate GDP, calculated on the basis of purchasing power parity (PPP), is approximately reached to the amount of US$ 65 trillion, which constitutes 33% of the global GDP PPP.
BRICS Summit 2024’s Agenda
On the 23 and 24 October, Russia convened the 16th Summit of the BRICS. Representatives from 32 nations had participated in this Summit in Kazan, Russia. The summit has arisen as the preeminent geopolitical event orchestrated by Russia in the aftermath of the invasion of Ukraine, symbolizing the Kremlin’s strategic pursuit to promote a multipolar world order as a counterweight to U.S. dominance.
The BRICS Summit revolved around the agenda of “Strengthening Multilateralism for Fair Global Development and Security,” underscoring the organization’s commitment to promoting a multipolar world order that emphasizes inclusivity and the reform of global governance frameworks. In accordance with this strategic initiative, the BRICS has introduced “BRICS Pay,” a payment system aimed at improving transaction efficiency and facilitating information exchange among the central banks within the bloc. This initiative functions as a credible alternative to the SWIFT system, thus facilitating international settlements that operate autonomously from the existing Western financial architecture.
In the quest for multilateral aims, the BRICS has adopted the “BRICS Kazan Declaration,” which championed the reforms within the United Nations, especially regarding the Security Council, and endorses the full participation of Palestine in the United Nations as part of a two-state solution. Moreover, the BRICS nations have come to an agreement to explore the creation of a cross-border settlement and depository system, entrusting finance ministers with the task of continuously assessing the feasibility of national currencies in the context of international payments.
On October 24, a session convened by Russia in the BRICS Plus/Outreach format brought together representatives from the CIS, Asia, Africa, the Middle East, and Latin America, indicating a notable expansion of BRICS’ global influence. Thirteen new partner countries—Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam—have recently aligned themselves with the broadened agenda of BRICS, highlighting the organization’s growing influence across diverse geopolitical contexts.
The agenda of multipolarity and multilateralism, promoting the pursuit of a more equitable global order have been figured in the Kazan Declaration. The declaration offers a nuanced critique of Western practices by articulating the deep apprehension about the adverse effects of unlawful unilateral coercive measures, including illegal sanctions, on the global economy, international trade, and the advancement of sustainable development objectives.
Russia -Ukraine War and Sanction Regime
Commencing in February 2022, the conflict between Russia and Ukraine has raised geopolitical concerns and resulted in broad US, European Union’s sanctions. Sanctions on Russia’s financial sector, energy exports, and technological access constitute crucial first steps towards isolating her diplomatically and economically. Russia’s financial power was contracted as more than $300 billion in Russian central bank reserves were frozen and major Russian banks were expelled out of SWIFT, so limiting international transactions. An EU embargo on Russian coal, gas, and oil as well as a G7-imposed price cap on Russian crude have further taxed Russia’s income from energy exports.
The ruble declined, inflation increased, and Russia’s GDP were contracted by 2-3% in 2022 as a result of the economic interruptions caused by these sanctions. Russian companies are experiencing challenges in filling the gaps in the consumer and technology markets as a result of the widespread withdrawal of Western corporations from Russia. Additionally, Russia’s economic and military advancements are restricted by export restrictions on advanced technologies, including semiconductors. In spite of these challenges, Russia has responded by increasing trade with countries outside the Western bloc, particularly China and India, and the economic consequences have been less severe than initially anticipated.
The sanctions have fortified Russia’s alliances with China and other BRICS countries and have facilitated its geopolitical transition toward Asia by altering trade and energy flows. Europe’s energy costs experienced a significant increase as a result of its diversification of energy sources to reduce its dependence on Russian gas. This involved the imports of more LNG from the United States and other suppliers. Russia has responded by redirecting its cheap gas and oil exports to Asian markets, thereby diminishing Europe’s influence in the global energy market and forging new trade relationships. Furthermore, the sanctions and war have revealed the vulnerabilities of the Western-led order. The SWIFT enforcement of sanctions has placed significant pressure on European economies, particularly due to inflation and the increasing cost of energy. This has prompted certain international powers, including allies of the United States, to investigate alternatives to the dollar-based financial system and has drawn attention to the dollar’s deficiencies as a primary tool for sanctions. The sanctions have driven Moscow to pivot towards the East, forge alliances with Asian partners, and contribute to the establishment of a multipolar global order that diminishes dependence on U.S.-controlled financial systems.
The Geopolitical Expansion of BRICS
The geopolitical expansion of BRICS, highlighted at the 2024 Kazan Summit, marks a pivotal shift in global politics, notably influencing Russia’s strategic manoeuvres within the sphere of international relations. The inclusion of countries such as Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE reflects a strategic initiative to enhance the representation of the Global South and emerging markets within BRICS. This membership expansion aims to strategically reshape global power dynamics, challenging the dominance of Western-centric institutions and bolstering the collective negotiating power of the bloc.
The summit highlighted the proposal for a BRICS common currency, designed to boost trade among the member nations. This initiative holds considerable significance for Russia and its allies, as it reduces reliance on the U.S. dollar, challenging Western economic supremacy and fostering greater financial stability in the region. The summit highlighted the critical role of collaboration in political and security issues, emphasizing the need to combat terrorism and address regional conflicts. The BRICS nations have committed to mutual support in these areas, advocating for a multipolar world order that respects national sovereignty and rejects interference in domestic affairs.
The expansion of BRICS presents Russia with a crucial opportunity to regain its standing in global politics by strengthening ties with the new member countries. This strategic move allows Russia to alleviate the impact of Western sanctions and political isolation while promoting a multipolar world order that challenges Western dominance. Furthermore, increased economic collaboration within BRICS allows Russia to expand its trade partnerships, reducing dependence on traditional Western markets while exploring new trade routes and investment opportunities.
Moreover, Russia’s involvement in BRICS fosters alignment with countries that share common geopolitical and geostrategic interests, nurturing collaborative security frameworks that enhance regional stability and forge strategic alliances on global platforms. Therefore, the geopolitical expansion of BRICS marks a significant shift in global power dynamics, allowing Russia to enhance its influence, broaden economic ties, and strengthen security alliances with emerging economies, thereby reshaping international relations.
Kazan Declaration: Russia Strategic Gains
The Kazan Declaration offers a thorough framework aimed at enhancing multilateralism and fostering a more just and democratic global order. Essential elements encompass the emergence of new power centers, dedication to multilateralism, the need for reform in global governance, advocacy for UN reform, and a focus on establishing a fair and inclusive multilateral trading system. The document highlights the significance of a multipolar world that enables emerging and developing countries (EMDCs) to engage more actively in global affairs.
The Declaration advocates for a cooperative strategy in global governance, highlighting the United Nations as a fundamental pillar for peace, security, human rights, democracy, and development. BRICS advocates for a thorough reform of the UN, with a specific focus on the Security Council, aiming to improve both representation and effectiveness. The Declaration underscores the necessity for a strong Global Financial Safety Net, advocating for reforms in Bretton Woods institutions such as the IMF to more accurately represent the contributions of EMDCs to the global economy.
A central pillar of Russia’s BRICS strategy is the creation of alternative financial channels. With Western sanctions effectively severing Russia’s access to SWIFT and limiting its dollar transactions, the Kremlin has been vocal about BRICS’ potential for developing a parallel financial infrastructure. In the Summit, Russia proposed a “BRICS Bridge,” a blockchain-based payment system aimed at reducing reliance on the U.S. dollar. Although this proposal has yet to be fully realized, it signals Moscow’s commitment to a multipolar financial system that could eventually bypass Western financial controls.
This economic weight of BRICS provides Russia with crucial markets and resources, bolstering its trade relations in sectors like energy, technology, and agriculture. In response to sanctions, Russia has pivoted toward energy trade with China and India, two of BRICS’ largest members, with Russian oil exports to China increasing by 55% in 2023 alone has weakened the efficacy of sanctions, underscoring the limitations of Western financial isolation when alternative networks exist.
The 16th BRICS Summit in 2024 marked a pivotal change in the landscape of challenging U.S. dominance in political, economic, and geopolitical arenas. The summit underscored the necessity of creating a multipolar world order as a response to the U.S.-dominated unipolarity that has existed since the conclusion of the Cold War. The BRICS member states have pledged to work together on crucial matters including international governance, human rights, and the rule of law. This partnership seeks to establish a cohesive opposition to the Western standards that have long influenced global conversations.
The inclusion of countries like Argentina, Egypt, and Iran in BRICS exemplifies this political challenge clearly for the western dominance. The unification of developing countries under the BRICS framework effectively reduces the political influence of the United States and its allies, facilitating a synchronized strategy toward common interests and political objectives. This strategic partnership empowers BRICS to amplify its impact in global discussions.
The summit highlighted initiatives aimed at creating alternative financial systems that contest the existing economic supremacy of the United States. The primary emphasis was on the proposal for a unified BRICS currency designed to enhance trade and diminish dependence on the U.S. dollar, a crucial element of American economic dominance. Moreover, the BRICS nations are actively working on the creation of bilateral trade agreements that circumvent the dollar, thereby strengthening economic resilience among the member states.
The summit underscored the significance of joint security initiatives to tackle common challenges, especially in areas like Eastern Europe and the Middle East. BRICS seeks to shape global governance by promoting reforms in international institutions, particularly the United Nations, to enhance the representation of emerging economies’ interests. The expansion of BRICS signals a cautionary note to the U.S. and NATO, highlighting that nations are progressively exploring alternatives beyond Western-dominated organizations. More than 40 countries have shown interest in joining BRICS, highlighting a significant demand for a global framework that facilitates more equitable involvement. This trend poses a risk of diminishing Western influence and suggests that unilateral sanctions may prove ineffective in the presence of alternative alliances.
Internal Challenges
Despite the potential for geopolitical impact, the expansion also brings internal challenges, notably in managing diverse member interests. BRICS’ decision-making process is consensus-based, meaning differing agendas could create friction, particularly between China and India, both of whom have contrasting approaches to global governance. China’s role in BRICS is often viewed as dominant, which may create hesitations among other members wary of excessive Chinese influence. Russia’s role, therefore, may be one of balancing relationships and mediating between competing national interests to maintain cohesion within BRICS.
While countries like Brazil and South Africa favor a more diplomatic stance that does not directly oppose Western structures, Russia and China are keen on positioning BRICS as a competitor to the Western-dominated international order. As a result, maintaining internal unity within the expanded BRICS could be a challenge, particularly as each member has unique relationships with the U.S. and the West.
Conclusion
In summary, the geopolitical expansion of BRICS signifies a crucial geopolitical strategy for Russia, enabling it to mitigate Western sanctions and reinforce its presence on the international arena. Through the promotion of a multipolar world order and the creation of alternative economic frameworks, Russia been anticipating to effectively counter the impacts of U.S. isolation strategies. The recent BRICS Summit in Kazan underscored the bloc’s dedication to transforming global governance and fostering collaboration among emerging economies, thus contesting the power of Western institutions. Nonetheless, this expansion brings forth internal challenges, as the varied interests of members may hinder the process of reaching a consensus within the group. The increasing influence of BRICS compels Western powers to reassess their engagement strategies with the Global South, reflecting a shift in the dynamics of international relations towards a more multipolar landscape. Ultimately, the advancements within BRICS not only enhance Russia’s geopolitical position but also signify a wider shift in global power dynamics, where the quest for multipolarity is steadily materializing.
