Russia’s Trade With BRICS Nations Over US$125 Billion
Russian President Vladimir Putin, speaking at last weeks BRICS summit in Brasilia, said that Russia’s overall trade volume with the BRICS group was ”in excess of US$125 billion” and grew by 22.4% last year.
He also said that Russia is ready to share its experience in digital technologies. “There are good chances for boosting our cooperation in computer science and telecommunications. Russia offers BRICS states to take a closer look at our newest projects. I am talking about electronic document management, search systems and antivirus software, which responds to the highest advanced security requirements.”
The Russian president offered to expand energy cooperation, noting: “Russia reliably ensures deliveries of energy materials to global markets and makes a significant contribution to supporting global energy security which is vital for economic growth and social development.”
Putin has earlier called on the trade partners to develop settlements in national currencies, instead of the commonly used currencies like the US dollar. According to him, the integration of payments systems and the establishment of an independent channel on information exchange could facilitate the stability of the banking systems of the five countries. A BRICS PAY cloud based system has already been dscussed among member states.
As of 2018, combined nominal GDP of these five emerging economies amounted to US$18.6 trillion, which is about 23 percent of the gross world product. The trade bloc represents more than 40 percent of the world’s population.
According to International Monetary Fund estimates, member states will be responsible for more than half of the global economic growth by 2030.
Moscow has been chosen as the Eurasian HQ for the BRICS New Development Bank, while Russia will Chair the BRICS grouping from 1st January next year.
A summary of the just completed BRICS Summit Declaration in Brasilia, which finished this past weekend can be read in our report here.
BRICS And The Eurasian Economic Union
The current status of the Eurasian Economic Union (EAEU) and the BRICS nations as a potential free trade partners can be seen in the image below. Of the five BRICS nations, Russia is the lead partner in the EAEU, China has signed an as yet non-preferential free trade agreement, while India is currently holding negotiations. South Africa is keen to access new markets as is Brazil.
- BRICS New Development Bank Splashes Out On Projects For India, Russia & South Africa
- BRICS Nations Look at Establishing A Common Arbitration Centre
- More Self Reliance than US Reliance Promoted as BRICS 2018 Summit also Calls for Expansion
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