.jpg)
De-dollarization is irreversible – Putin
BRICS will become economically more powerful than the G7, the Russian president said in an address to the Johannesburg summit
The US dollar is losing its global role in an “objective and irreversible” process, the Russian president told participants at the BRICS Summit in South Africa on Tuesday. Vladimir Putin spoke via videolink, after choosing not to attend the event in person.
De-dollarization is “gaining momentum” Putin declared, adding that members of the group of major emerging economies are seeking to reduce their reliance on the greenback in mutual transactions.
The Russian leader claimed the five BRICS members – Russia, China, India, Brazil and South Africa – are becoming the new world economic leaders, adding that their cumulative share of global GDP has reached 26%.
He noted that if measured by purchasing power parity, BRICS has already surpassed the Group of Seven leading industrialized nations – accounting for 31% of the global economy, compared to 30% for the G7.
De-dollarization is “gaining momentum” Putin declared, adding that members of the group of major emerging economies are seeking to reduce their reliance on the greenback in mutual transactions.
The Russian leader claimed the five BRICS members – Russia, China, India, Brazil and South Africa – are becoming the new world economic leaders, adding that their cumulative share of global GDP has reached 26%.
He noted that if measured by purchasing power parity, BRICS has already surpassed the Group of Seven leading industrialized nations – accounting for 31% of the global economy, compared to 30% for the G7.
- Over the past 10 years, mutual investment between the BRICS member states has increased by six times.
- Their total investments in the world economy have doubled, while cumulative exports account for 20% of the global total, Putin said.
Moscow is focusing on re-orienting its transport and logistics routes towards “reliable foreign partners,” including BRICS members, to ensure an uninterrupted supply of energy and food to the international market.
Russia’s primary goals include developing the Northern Sea Route and the ‘North-South’ transport corridor, Putin stated.
- The first, passing through the Arctic Ocean, along Russia’s northern coastline, will ensure faster goods deliveries between Europe and the Far East.
- The second will connect Russia’s northern and Baltic ports to the Persian Gulf and the Indian Ocean, facilitating cargo movement between Eurasian and African nations.
“Illegitimate sanctions… seriously weigh on the international economic situation,” and the “unlawful freezing of sovereign states’ assets” constitutes a violation of free trade and economic cooperation rules.
The resource deficit and growing inequality worldwide are a “direct result” of such policies, the Russian president argued.
- He highlighted skyrocketing grain and food prices as the latest manifestation of this process, primarily affecting the most vulnerable nations.
South Africa is a signatory of the Rome Statute of the ICC, and the US and its allies had pressured it to detain Putin should he travel to the country. Moscow has repeatedly denied the ICC’s allegations and stressed that it does not recognize the court’s authority, declaring the warrant legally null and void.
Although South African President Cyril Ramaphosa repeatedly stated that he would not carry out the order, claiming it would amount to a “declaration of war,” Moscow ultimately decided to send Foreign Minister Sergey Lavrov to the BRICS summit to represent Russia.
___________________________________________________________________________________
___________________________________________________________________________________
Putin can't attend the BRICS summit for fear of arrest, but he couldn't pass up taking potshots against the West and the US dollar via tape
- Russian President Putin railed against Western sanctions and touted de-dollarization at the BRICS summit.
- Putin made his comments via tape as he would be arrested if he attends the summit in person.
- Putin said the BRICS bloc represents the "global majority" and is an alternative to the Western order.
Russian President Vladimir Putin cannot attend the BRICS summit in South Africa in person for fear of arrest — but he couldn't pass up railing against the West and the dollar dominance via tape.
On Tuesday, Putin slammed Western sanctions against Russia over the Ukraine war in a 17-minute prerecorded speech broadcasted at the summit in Johannesburg, South Africa. BRICS member nations include Brazil, Russia, India, China, and South Africa.
Putin said the trade restrictions imposed on Russia amounted to "illegitimate sanctions practice and illegal freezing of assets of sovereign states, which essentially amounts to them trampling upon all the basic norms and rules of free trade," according to an Associated Press translation of his speech at the three-day event that started on Tuesday.
On Tuesday, Putin slammed Western sanctions against Russia over the Ukraine war in a 17-minute prerecorded speech broadcasted at the summit in Johannesburg, South Africa. BRICS member nations include Brazil, Russia, India, China, and South Africa.
Putin said the trade restrictions imposed on Russia amounted to "illegitimate sanctions practice and illegal freezing of assets of sovereign states, which essentially amounts to them trampling upon all the basic norms and rules of free trade," according to an Associated Press translation of his speech at the three-day event that started on Tuesday.
Putin isn't attending the BRICS summit in person because South Africa — a member of the International Criminal Court that has a warrant out for Putin — would be forced to arrest him if he shows up.
In the same speech, Putin also touted de-dollarization and renewed his call to increase the use of local currencies for trade.
In the same speech, Putin also touted de-dollarization and renewed his call to increase the use of local currencies for trade.
"The objective, irreversible process of de-dollarization of our economic ties is gaining momentum," Putin said, per a Reuters translation. He added that the summit participants would discuss in detail all the issues and mechanisms related to local currency trade.
Russia has been largely shut out of the dollar-dominated international payments system following its invasion of Ukraine and is facing challenges in its economy. It's gotten so testy that top officials in Russia appear to be blaming one another for the country's economic woes in public.
- Countries globally are also lining up backup currencies for trade and transactions as sanctions against Russia over its invasion of Ukraine have led to some prominent world leaders and business figures sounding a warning over the power Washington — and the dollar — wields.
"We cooperate on the principles of equality, partnership support, respect for each other's interests, and this is the essence of the future-oriented strategic course of our association, a course that meets the aspirations of the main part of the world community, the so-called global majority," Putin said, per Reuters.
The BRICS bloc is home to 40% of the world's population and a quarter of global GDP.
No comments:
Post a Comment