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Putin gets the BRICS win he wanted by bringing Modi and Xi together

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Chinese President Xi Jinping and Indian Prime Minister Narendra Modi used the BRICS summit in Russia on Wednesday to signal their intent to build a more harmonious relationship after years of hostility between the world’s two most populous countries.

The meeting between Xi and Modi, who had not held formal talks in five years, was one of the highlights of the summit. President Vladimir Putin used the event to demonstrate that Western efforts to isolate Russia over the war in Ukraine had failed.

The summit’s final declaration listed several initiatives to boost trade among BRICS countries, including the development of an alternative payment system to the U.S. dollar, though no specifics or timelines were provided.

Just two days after New Delhi announced that it had reached an agreement with Beijing to resolve four years of military tensions along their disputed Himalayan border, Xi told Modi that both countries should enhance communication and cooperation while effectively managing their differences.

“It is in the fundamental interests of both countries and their peoples that China and India correctly understand the trajectory of history and the future direction of their relations,” Xi said, according to Chinese state broadcaster CCTV.

In response, Modi emphasized the importance of maintaining peace and stability along the border, stressing that mutual trust, respect, and sensitivity should form the foundation of their relationship.

“We welcome the fact that agreement has been reached on the issues that have arisen over the last four years,” Modi told Xi in remarks broadcast on India’s state television, Doordarshan.

The BRICS group, now representing 45% of the world’s population and 35% of its economy, held its summit at the same time as the annual meetings of the International Monetary Fund and the World Bank in Washington.

Former Goldman Sachs economist Jim O’Neill, who coined the term BRIC in 2001, told Reuters that he had little optimism for the BRICS group as long as China and India remained deeply divided.

“It basically looks to me like a symbolic annual meeting where important emerging economies like China, and especially vocal countries like Russia, can come together to emphasize how good it feels to be part of something that doesn’t involve the U.S., and to point out that global governance isn’t good enough,” O’Neill said.

However, the handshake between the leaders of India and China, along with the steps taken to resolve their border disputes in the lead-up to the summit, surprised many Western observers.

Highlights of the final declaration

In a show of defiance against Western efforts to isolate him, Putin hosted more than 20 world leaders, including Turkish President Recep Tayyip Erdoğan and Iranian President Masoud Pezeshkian, at the summit in the Volga River city of Kazan.

United Nations Secretary-General António Guterres also attended, reinforcing Putin’s message.

Although the final declaration did not include detailed statements on the Ukraine crisis, the issue was on the leaders’ agenda. Modi told Putin he wanted peace in Ukraine, while Xi Jinping and Sheikh Mohammed bin Zayed Al Nahyan, the UAE leader who has attempted to mediate, also discussed the war in closed-door talks with Putin.

The summit’s 43-page final declaration addressed a wide range of issues, from geopolitics and drug trafficking to artificial intelligence and even big cat conservation. Ukraine was mentioned only once.

“We note with appreciation the relevant proposals for mediation and goodwill missions aimed at the peaceful resolution of the conflict through dialogue and diplomacy,” the Kazan declaration stated.

The document also called for a ceasefire in Gaza and the West Bank and condemned Israeli attacks on humanitarian aid operations, personnel, and distribution points.

While there were few specifics on alternative payment systems, the BRICS leaders expressed interest in their development and instructed central banks to report back during the next presidential term.

Citing factors such as population growth, urbanization, capital accumulation, and productivity growth, Putin said: “The trend towards the leading role of BRICS in the world economy will continue to strengthen.”

China and India currently buy about 90% of Russia’s oil, which remains Moscow’s largest foreign exchange earner. Russia is the world’s second-largest oil exporter.

The leaders indicated their intent to promote the institutional development of BRICS, though it was unclear whether the group would be expanded.

Putin noted that more than 30 countries had expressed interest in joining BRICS, but he emphasized the importance of maintaining balance in any future expansion.

DIPLOMACY

Britain delays implementation of ‘foreign influence agents’ legislation

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After years of work, plans to register ‘foreign influence agents’ operating in the UK, similar to those in the US, have been temporarily shelved as the new Labour government in London seeks to reassess its relationship with Beijing.

The Foreign Influence Registration Scheme (FIRS) became law last year as part of efforts to protect British politics from ‘malign foreign actors.’ Countries such as Russia, Iran, and China were expected to face further scrutiny under the scheme, but its implementation has now been delayed until next year.

A government official, speaking on condition of anonymity, confirmed to POLITICO that the policy on China, including the FIRS programme, has been paused until the completion of the government’s ‘China audit,’ which is expected early next year.

Labour blames conservative government for delay

Controversy erupted last week after Labour Security Minister Dan Jarvis blamed the previous Conservative government for the delay.

Jarvis claimed that the Conservatives had “completely failed to take the necessary measures” to implement the plan and that IT solutions for registration were “not ready.”

His comments followed a letter from his Conservative predecessor, Tom Tugendhat, who questioned the delay and said he had been ready to launch the scheme in autumn 2024. Tugendhat argued that there was no reason the scheme couldn’t be launched before the end of this year, even considering the upcoming UK general election.

Is the Starmer government changing its China policy?

Conservative MP Alicia Kearns, the former chair of the Commons Foreign Affairs Committee, told POLITICO that the ‘necessary preparatory work’ had been completed ‘well in advance’ of the election, and described Labour’s claims as ‘completely unfounded.’

Kearns suggested that Labour’s ‘softening position’ on China was responsible for the delay.

Meanwhile, Foreign Secretary David Lammy visited Beijing last week as part of a broader diplomatic initiative to review economic and political relations with China.

Treasury allegedly ordered to go ‘soft’ on China

The same official, quoted earlier, indicated that the review, expected to conclude in January, will provide ministers with clear guidance on areas of policy where closer engagement with China is possible.

Another government official, also speaking anonymously, said he was not aware of the specific details of the FIRS programme but noted that the shift in approach towards China had been prompted by the Treasury.

The FIRS programme, designed to align the UK with ‘Five Eyes’ intelligence allies such as Australia and the United States, will require individuals engaging in political activities on behalf of a foreign power in the UK to register. Once a country is placed in the ‘advanced’ tier, ministers will be able to extend registration requirements to cover a wider range of activities and individuals working on behalf of foreign government-controlled organisations.

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BRICS summit highlights multilateralism

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The BRICS countries endorsed the Kazan Declaration, which aims to strengthen multilateralism, and pledged to reform global governance, increase financial cooperation, and resolve conflicts through diplomacy. They also called for a ceasefire in Gaza and supported Palestine’s full membership in the UN.

The BRICS leaders adopted the declaration “Strengthening Multilateralism for Equitable Global Development and Security” at the 16th BRICS Summit in Kazan.

The document was published on the official website of the Kremlin. The Kazan Declaration expresses the BRICS member states’ commitment to deepening cooperation in three main areas: political and security, economic and financial, and cultural and humanitarian ties.

Towards a fairer and more democratic world order

The declaration noted the emergence of new centers of power, political decision-making mechanisms, and economic growth that would lay the foundations for a “more equitable, democratic, and balanced multipolar world order.”

It called for greater participation by emerging economies, developing countries, and least-developed countries, particularly from Africa, Latin America, and the Caribbean, to improve global governance. It also advocated for reform of the Bretton Woods institutions and for greater representation of developing countries in leadership positions.

Additionally, it called for an end to coercive measures, including unilateral economic sanctions and secondary sanctions.

The summit also emphasized the need to establish a two-tier dispute settlement mechanism within the World Trade Organization (WTO) and to expedite the appointment of new members to the Appellate Body.

Strengthening security

The BRICS countries expressed concern over ongoing armed conflicts around the world and called for the peaceful resolution of disputes through diplomacy.

In particular, they condemned Israel’s military operations in Palestine, Lebanon, and Syria. They called for an immediate ceasefire in Gaza, the unconditional release of all hostages and detainees on both sides, and the uninterrupted delivery of humanitarian aid to the region.

The BRICS leaders also expressed support for Palestine’s admission as a full member of the United Nations (UN).

The Russia-Ukraine conflict was also addressed in the declaration. Recalling the national positions of the BRICS countries in the UN Security Council and the UN General Assembly on this issue, the declaration underlined the importance of a peaceful resolution of the conflict through dialogue and diplomacy.

Additionally, the BRICS countries agreed to cooperate within the BRICS framework to combat money laundering, terrorist financing, and cybercrime.

Financial and economic cooperation

The declaration emphasized the need to reform the existing international financial structure to make it more equitable.

The summit discussed the possibility of establishing an independent cross-border settlement and custody infrastructure called BRICS Clear, an initiative complementary to existing financial market infrastructure, as well as a voluntary independent BRICS reinsurance capacity, including BRICS (Re)Insurance.

The leaders also called for strengthening correspondent banking networks among BRICS countries and aligning national currencies.

The parties further agreed to share standards and methodologies for managing special economic zones.

While all BRICS countries were encouraged to invest in research infrastructure, it was also proposed to transform the New Development Bank into a new type of International Bank for Reconstruction and Development, tailored for the 21st century.

Strengthening humanitarian assistance and cultural exchanges

The declaration stressed the importance of humanitarian assistance within BRICS and agreed to promote cultural cooperation. This included the establishment of museums, national galleries, libraries, theaters, and a film school alliance.

The declaration concluded by welcoming Russia’s assumption of the BRICS presidency in 2024 and pledging full support to Brazil during its presidency the following year.

The XVI BRICS Summit, which began on 22 October in Kazan, consisted of two sessions. The first session focused on the theme of Russia’s 2024 presidency, “Strengthening Multilateralism for Equitable Global Development and Security.”

The second session was organized in the BRICS Plus/Outreach format, titled “BRICS and the Global South – Building a Better World Together.”

For the first time, this year’s summit was held in an expanded format, with Egypt, Iran, the United Arab Emirates, and Ethiopia joining Brazil, Russia, India, China, and South Africa.

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Indian academician: ‘BRICS is a platform to defuse India-China tensions’

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Dr. Rajiv Ranjan, Associate Professor, East Asian Studies at the University of Delhi, commented on India’s expectations regarding the BRICS Summit to Harici: “I think it is wrong to think that India-China rivalry or disagreements are weakening BRICS. From the Xiamen Summit in 2017 to the Kazan Summit in 2024, BRICS has emerged as one of the international platforms to defuse tensions between India and China. The India-China tension has not affected BRICS in any way.”

While the West is eyeing the points of ‘disagreement’ at the 16th BRICS Summit that started in Kazan, hosted by Russia, an important step came from China and India, two rival countries in the grouping that have been at the forefront of disagreement and conflict between them.

Indian Foreign Minister Subrahmanyam Jaishankar said the agreement on military patrols in certain areas brings the situation back to where it was before the deadly border clash in 2020, adding that the “distancing process” with China has been completed. Beijing confirmed that the two sides had “reached a settlement” as a result of “close communication on relevant border issues through diplomatic and military channels”.

This was seen as a development that would pave the way for a meeting between Indian Prime Minister Narendra Modi and Chinese President Xi Jinping in Kazan. It is expected to be the first official meeting between Xi and Modi since the 2020 conflict, which created a lasting strain in relations between the two countries.

Prior to the summit, Western experts had said that it would be difficult for BRICS to develop a common position and adopt a common stance, especially in light of the conflict between the two countries. However, this development shows that BRICS is playing a positive role in resolving conflicts between member countries.

We discussed the meaning and importance of BRICS for India and New Delhi’s expectations from the Kazan Summit with Assoc. Prof. Rajiv Ranjan from East Asian Studies at the University of Delhi.

What do BRICS mean for India? What are India’s expectations from this summit?

BRICS for India is a grouping of countries which reflects their aspiration to build better world, which is equitable and just. BRICS also represents new reality of these new emerging countries in the world. BRICS is united to help and assist countries of Global South to develop, both economically and politically.

From this summit , which is after recent expansion of BRICS, India hopes to get better voice for countries of Global South. Prime Minister is expected to meet both Russian President Putin and Chinese president Xi Jinping on sidelines of the summit too. This is essential for India to usher the multipolar Asia and world order. India promote trade and economic development, protect interests of global south in climate change negotiations and fight against terrorism.

For Putin, this summit is considered important both symbolically and practically. What do you think? How do you evaluate the importance of this summit for Russia?

Since Russia -Ukraine war, Russia is under sanctions both political and economically by united West. Russia may like to garner support to counter these pressures.

The dispute and competition between China and India is seen as one of the weaknesses of BRICS. Do you agree? On what issues might the two countries clash at this BRICS summit? Is the expansion agenda one of them?

I think this is the wrong way to project and infer that India – China competition or disputes any way weakens BRICS. In fact, BRICS has emerged as one of the international platforms which defuses the tension between India and China, from Xiamen Summit 2017 to Kazan Summit 2024. In no way India China tension has impacted BRICS.

BRICS expansion had enabled India to reach to greater audiences in Global South. As we know that expansion of BRICS is not decided by one member but all so it wrong to say that any one can have more influences or dictate the terms to other.

China had called for BRICS to “transform into a new type of multilateral cooperation mechanism”. China is said to see BRICS as a tool for its political and strategic goals towards the international system. Do you agree?

Ans. Every member countries has its own agenda and objectives. But remember that BRICS is a collective identity and not foreign policy of one country. BRICS is formed to enlarge and protect the interests of its member countries. As PRIME Minister Modi had remarked earlier BRICS is not against any other country. We have to see BRICS as a positive voice in international system and not anti west grouping.

So don’t you agree with the approach that BRICS is an alternative to Western-centered institutions and functioning?

BRICS is an alternative but not necessarily against the west. It is designed to protect and create more equitable and just order. It is not designed to oppose but create complementary to the existing institutions and structures.

BRICS has an important place in the world economy. De-dollarization in trade and alternative payment systems between member countries are on the agenda of this summit. How do you evaluate this? Do you see it realistic?

BRICS, if it can come up with its own currency, then it will provide alternative to existing payment system. Domination of one currency is not good for global south. The world is moving towards multipolar order and thereby it’s natural that there are payment systems which is not controlled and exploited by few institutions or countries. Thereby having more payment alternatives in fact, usher economic multipolarity.

Well, it looks little complicated given the very nature of BRICS and above all of would be united efforts of a group of countries leading to a payment system not dominated by one but true multilateral payment system.

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