Sep 26, 2024
Russia, together with BRICS countries, is working on creating its own payment system for the independent handling of all foreign trade, Russian President Vladimir Putin announced.
“In cooperation with BRICS countries, we are working on creating our own payment and settlement system, which will create conditions for the effective and independent servicing of all foreign trade,” Putin said during the plenary session of the Russian Energy Week International Forum.
BRICS is an interstate organization established in 2006. As of January 1, 2024, Russia assumed the chairmanship of BRICS. This year, new members have joined the group – alongside Russia, Brazil, India, China, and South Africa, it now includes Egypt, Ethiopia, Iran, the UAE, and Saudi Arabia.
Putin further elaborated that BRICS sees its mission in combining economic potential and creating a space for mutually beneficial cooperation between countries.
“BRICS, with Russia chairing the organization this year, sees its mission in combining economic potential and creating opportunities for all those interested in harmonious, mutually beneficial cooperation,” he said.
The president emphasized that this is about mutually beneficial cooperation. “In other words, it’s in the common interests of our countries and peoples,” Putin clarified.
Some people think that they can use illegal sanctions against Russia to their advantage in the energy sector, Putin said.
The president called modern energy one of the key industries, a real foundation for global development, adding that its calm operation according to transparent and understandable rules, as well as the development of deposits, processing of resources, and uninterrupted supplies to the market create a solid foundation for economic growth, the social sphere, and improving the well-being of citizens.
“Unfortunately, this truism is being taken less and less into account by those who have adopted the mechanisms of illegal sanctions and believe that they can use them to their advantage in the energy sector,” he noted.
Western elites are blocking access to the platform of fuel and energy technologies to undesirable countries, as they cannot cope with competition, the president pointed out.
“Western elites believed that they could block access to these services to those countries that they dislike politically, thus putting them on the sidelines of progress, but in fact simply squeeze them out of the market. I think many people will agree with me that all these tools are used primarily as tools of unfair competition,” Putin said.
The West does not want competition because it cannot cope with it, it often loses in a fair fight, the president concluded.
The countries of the Global South with high birth rates will be the leaders in economic growth, President Putin noted.
“The leaders in terms of [economic] growth rates, I want to emphasize this, namely in terms of rates, will be the states of the so-called Global South, where the GDP per capita is still low, the urbanization rate is quite low and the birth rate is high. These are primarily the countries of South and Southeast Asia, as well as Africa,” he said at the plenary session.
Putin went on to say that Russia is ready to strengthen the technological sovereignty of its partners in the energy sector.
“Russia is ready to strengthen the technological sovereignty of its partners in the energy sector by forming full-fledged scientific and production chains,” he added.
BRICS sees its task in combining economic potentials, creating a space for mutually beneficial cooperation between countries.
“BRICS — Russia is chairing this organization this year — sees its task in combining economic potentials, in creating a space of opportunities for all who are interested in harmonious, mutually beneficial cooperation,” Putin emphasized.
The global economic growth in the 21st century will be concentrated in BRICS countries and not in Europe or North America, Putin elaborated.
“There is an emergence of multipolar models of development that are triggering a new wave of global growth for the entirety of the 21st century … The main growth will concentrate not in Europe and not in North America, which are gradually losing their positions in the global economy, but in the BRICS countries and in those states that want to join our group,” he noted.
The president added that the countries that aspire to join BRICS see prospects in an equal world as well as in respect of the countries’ national interests.
Russia embodies a fair energy transition in practice, unlike a number of Western countries that only use the green agenda, the Russian president added.
“Our energy balance is one of the greenest in the world, this is an obvious fact. And unlike some Western countries that use the climate agenda to promote their essentially neo-colonial interests, we are putting into practice a fair, orderly energy transition,” he said.
Energy consumption in Russia will grow by an average of 2% per year by the end of this decade, Putin explained.
“According to estimates, by the end of this decade, energy consumption in Russia will grow by an average of 2% – this is about the same indicator as in the whole world,” the president said, adding that this is clear sign of economic growth.
Russia is fulfilling its obligations to supply energy resources to the world market.
“Russia fulfills its obligations to supply energy resources to the world market and plays a stabilizing role in it,” Putin said during the session, adding that energy supplies from Russia will help to balance world markets.
Russia remains one of the leading participants in the energy market despite difficulties, President Putin elaborated.
“Despite objective difficulties, they are well known to everyone, in fact, everyone has difficulties, we have our own considerable difficulties, nevertheless, Russia remains one of the leading participants in the energy market in the world,” he mentioned.
Over the past two and a half years, Russian companies have been able to redirect oil and coal supplies, the president said, adding that friendly countries account for 90% of Russia’s energy exports.
If the share of the Asia-Pacific region in the country’s energy exports was previously approximately 39%, by the end of last year it had grown by one and a half times and already exceeded 60%, he said.
“Deliveries via the Power of Siberia gas pipeline are increasing, and exports of liquefied natural gas [LNG] continue to grow,” Putin said, adding that Russia will continue to develop its technologies in the field of LNG.
Russia will continue to cooperate with partners within the framework of the OPEC+ and the Gas Exporting Countries Forum, Putin pointed out.
“Russia plays a stabilizing role…, participates in such reputable formats as OPEC+ and the Gas Exporting Countries Forum… We will certainly continue this cooperation with our partners,” he said.
It is necessary to prepare an updated energy strategy in the coming months and implement it step by step, the Russian president mentioned.
“I remind my colleagues from the government: it is necessary to prepare an updated energy strategy in the coming months. And then implement it step by step, work on the priorities of long-term development of the domestic fuel and energy complex. Now, as far as I know, the parameters are being agreed upon in the government between departments,” he noted.
Russia must consolidate its global leadership in the nuclear sphere, this is one of the tasks within the framework of the new national project, Putin noted.
“Within the framework of this national project, ambitious tasks will be set, namely, to consolidate Russia’s global leadership in the nuclear sphere. It is to consolidate world leadership, because now it, our leadership, is not global,” he said.
Another task within the framework of the national project was to ensure the technological sovereignty of Russia, and in all areas of the fuel and energy complex, Putin added.
Russia’s trade partners are interested in switching to national currencies to pay for Russian exports, Vladimir Putin mentioned.
“There is a separate issue regarding financial infrastructure, specifically payments for Russian exports. There are certain difficulties here. In order to solve this problem, we are switching to deals in national currencies and our partners are very interested in that,” he noted.
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