Putin Pushing BRICS To Invest In Developing Economies, Kenya Missing In The List
The BRICS alliance, an intergovernmental organization focused on strengthening economic collaboration, has proposed creating a digital investment platform aimed at supporting emerging markets.
Initially consisting of Brazil, Russia, India, China, and South Africa, the BRICS coalition expanded this year to include Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE).
BRICS to Focus on Digital Assets for New Investment Initiative
Speaking at the Valdai Discussion Club’s plenary session in Sochi, Russian President Vladimir Putin announced the proposed BRICS investment platform.
“We propose creating a new investment platform for BRICS, leveraging electronic assets and advancing their development,” Putin emphasized.
The platform is intended to establish a digital payment infrastructure that would support investments in high-growth regions across South Asia, Africa, and Latin America. By using a digital framework, BRICS aims to facilitate efficient investment flows from member nations into these regions.
Putin highlighted the potential of these target regions, noting that their strong population growth, capital accumulation, and urbanization make them attractive for BRICS investments. The plan aligns with BRICS’s goal to foster sustainable development in emerging economies.
The BRICS bloc’s expansion reflects its goal to bolster global economic influence. During the recent BRICS Summit in Kazan, Russia (October 22–24), the organization extended partnership invitations to 13 additional countries, with ambitions to create alternatives to Western-dominated financial systems, aiming to enhance financial independence.
Putin also addressed Russia’s stance on the U.S. dollar, noting that while the country faces restrictions on dollar usage, it does not plan to fully abandon the currency. He criticized U.S. regulations limiting dollar use, suggesting they might undermine American financial stability.
De-dollarization Efforts in the BRICS Bloc
Over the past decade, BRICS has pursued “de-dollarization,” aiming to reduce reliance on the U.S. dollar in global trade. Russia recently proposed a multicurrency payment system for intra-bloc transactions, encouraging trade in local currencies. Additionally, at the Kazan Summit, Putin introduced a “BRICS Bill” intended to lessen the group’s dependence on the dollar by establishing a trading platform for key commodities, such as oil, gas, grains, and gold.
Potential Challenges to De-dollarization
The BRICS de-dollarization agenda faces significant challenges, particularly with the dollar’s entrenched role in international finance. Recently elected U.S. President Donald Trump expressed a strong commitment to maintaining the dollar as the world’s reserve currency.
During a rally in Wisconsin, he warned of consequences for countries moving away from the dollar, signaling potential hurdles for the BRICS bloc’s ambitions as his administration takes office.
The upcoming years will reveal how BRICS navigates these geopolitical dynamics as it works to advance its digital investment platform and broaden economic collaboration among developing markets.
