Putin Tells BRICS Liberal Globalisation Is Obsolete, Urges National-Currency Trade

Russian President Vladimir Putin told the BRICS leaders by videoconference on Sunday that the liberal model of globalisation is becoming obsolete and that economic power is shifting toward rapidly expanding emerging markets. Speaking at the bloc’s summit in Rio de Janeiro, he said BRICS members now account for about 40% of global output and, at US$77 trillion in purchasing-power-parity terms, already surpass the Group of Seven’s US$57 trillion.

Putin urged the group—whose core members Brazil, Russia, India, China and South Africa have been joined by Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates—to deepen cooperation in natural resources, logistics, trade and finance. He called for an independent BRICS settlement and custody system to reduce reliance on Western networks and highlighted that 90% of Russia’s transactions with the bloc were conducted in national currencies last year. Putin addressed the meeting remotely because he faces an International Criminal Court arrest warrant stemming from the war in Ukraine.