For several days, global attention has been focused on the BRICS Summit in Kazan, the capital of the Republic of Tatarstan, Russian Federation. BRICS, one of the leading umbrella organizations in the movement toward a multipolar world order, has begun to outline to the global public how it plans to balance its geopolitical influence with its core economic objectives. To gain more insight, we asked Russian experts about BRICS and the summit.
Prof. Dr. Stanislav Tkachenko of the Department of European Studies, Faculty of International Relations, at St. Petersburg State University—and a member of the Valdai Club—shared his views on the economic goals and future of BRICS, especially in light of developments at the summit.
Ilber Vasfi Sel: Dr. Tkachenko, first of all, on behalf of Harici, we would like to thank you for your time. In light of the recent BRICS Summit, we have some questions for you. Russia has proposed an independent payment system for the BRICS countries as an alternative to the US-dominated global financial system. What are the main features of this plan, and how likely is it to succeed?
Stanislav Tkachenko: Due to the sanctions imposed on Russia by the West, Russia has been compelled to establish financial institutions parallel to those in the global economy. The requirements for a new payment system, intended to function similarly to SWIFT, are straightforward:
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It must be free from control by any single state.
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It should not be subject to political use.
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It should provide non-discriminatory access with clear rules for use.
The United States and its allies, who have been actively pressuring Russia economically under Washington’s directive, should not have a role in developing or managing this system.
Beyond excluding the US and its allies, the new system must also meet a set of technical and organizational requirements for its success. Here are some of the essential conditions for the BRICS independent payment system:
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Since BRICS countries are not discussing a single currency, the new system will operate through payments in national currencies. It will be genuinely multipolar, with the major BRICS currencies, such as the Chinese yuan, Indian rupee, Russian ruble, and UAE dirham, serving as central currencies.
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The monetary policies of participating countries will need to ensure transparent, fair access for all external parties, allowing for cross-border transfers, currency exchange rate stability, and moderate inflation, with minimal budget deficits.
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The payment system will leverage digital currencies, which offer the security needed for transactions and will limit Western countries’ capacity to impose sanctions on these payments.
The chances of success for this project are nearly 100%. Russia, India, and China, the three largest BRICS nations, have shown clear support for its implementation. The failure of the US sanctions war against Russia has demonstrated that the economies of the ‘global majority’ are resilient enough to withstand external pressures. The establishment of a “collective financial and economic defense system” under BRICS is key to supporting multipolarity in political and military-strategic spheres. Building a fair and effective multipolar system will be a task for future generations, and the independent BRICS payment system is a significant step in that direction.
Ilber Vasfi Sel: We have a follow-up question. Recently, it was announced that BRICS plans to create an independent payment system based on digital currencies and blockchain. Could this address the payment issues faced by countries under sanctions?
Stanislav Tkachenko: Yes, blockchain and digital national currencies are currently recognized as the most reliable methods for safeguarding cross-border financial transactions from foreign interference. The previous system, which relied on the dollar as a universal currency, allowed Washington to control global transactions through correspondent dollar accounts held in US banks.
With the introduction of a system enabling BRICS member countries—and public and private organizations—to make direct payments without relying on American intermediary banks, several goals can be achieved:
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Financial settlements not tied to Western currencies can be shielded from external control.
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The duration of such settlements can be significantly shortened. Currently, currency conversions involving the US dollar can take several days, whereas the new system could reduce transaction time to just minutes.
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BRICS countries using this system will be able to protect themselves from potential crises in the US dollar due to the United States’ considerable debt and an interventionist foreign policy that fuels instability in regions such as Eastern Europe, the Middle East, and the South China Sea.
Ilber Vasfi Sel: Thank you for your insightful answers, which will certainly help the Turkish public better understand BRICS and its agenda. We appreciate your valuable time.
Stay tuned to Harici for continued coverage and expert insights on BRICS.
