The President of Russia, Vladimir Putin said this Wednesday (22) that the country is in the process of redirecting its trade and its oil exports for countries in the BRICS group of emerging economies, in the wake of western sanctions due to the war in ukraine .
You brics bring together Brazil, Russia, India, China and South Africa.
The West imposed sanctions comprehensive to Russia including restrictions on imports of its oil, after the Kremlin sent troops to Ukraine on February 24.
To resist sanctions, the country is trying to strengthen ties with Asia, seeking to replace the markets it lost in the friction with European Union and the United States .
In a video speech to participants at the BRICS Business Forum, Putin said Russia is discussing increasing the presence of Chinese cars in the Russian market, as well as opening up Indian supermarket chains.
“In turn, Russia’s presence in the BRICS countries is growing. There has been a notable increase in Russian oil exports to China and India,” Putin said.
Putin also recalled that Russian technology companies have expanded their operations in India and South Africa, while the country’s satellites allow television broadcasts to up to 40 million people in Brazil.
He also said that Russia is developing alternative mechanisms for international financial operations together with its BRICS partners. The move would involve the creation of an international reserve currency based on a basket of member currencies.
The Russian leader did not provide further details on the proposal, which came amid efforts by Western powers to block Moscow from the global financial system in retaliation for the war in Ukraine.
Putin stressed that the Russian Financial Messaging System (SPFS) is open to BRICS banks.
“The Russian Financial Messaging System is open for connection with the banks of the BRICS countries. The Russian payment system MIR is expanding its presence. We are exploring the possibility of creating an international reserve currency based on the Brics basket of currencies,” he said.
Created by the Bank of Russia, the network acts as an alternative to Swift , from which the country was excluded. “Together with BRICS partners, we are developing credible alternative mechanisms for international offsets,” Putin said.
“Our macroeconomic policy shows its effectiveness in practice”, he argued, in addition to stating that the situation in the industry is already beginning to be “stabilised”.
The Kremlin chief claimed that companies in emerging countries have to deal with a challenging scenario, caused by the alleged refusal of the West to adhere to the basic principles of market economy, free trade and inviolability of private property.
“They are, in fact, following an irresponsible macroeconomic course, including the launch of the ‘printer’ – uncontrolled issuance and accumulation of unsecured debt”, he criticized.
Source: CNN Brasil
