Russia Proposes Changes to BRICS Cross-Border Payments to Circumvent Global Financial System”
Russia has introduced proposals aimed at altering the mechanisms for cross-border payments among BRICS countries, seeking to bypass the global financial system. This move is driven by the country’s desire to protect its economy from the effects of sanctions imposed by Western nations. As a result, Russia is looking for ways to conduct transactions outside the dominant international systems, reducing its dependence on those that expose it to punitive measures.
The alternatives outlined include the creation of a network of commercial banks within BRICS countries, enabling transactions in local currencies. This would lessen reliance on the U.S. dollar and other major currencies that are controlled by the global financial system. By focusing on using local currencies, Russia aims to create a more self-sufficient financial infrastructure that is resistant to sanctions.
In addition to the commercial bank network, the proposal also suggests establishing direct links between the central banks of BRICS member nations. According to a report jointly prepared by the Russian Finance Ministry, the Bank of Russia, and Moscow-based consultancy Yakov & Partners, these changes are intended to provide greater financial independence and foster stronger economic cooperation within BRICS, while also protecting Russia from future financial penalties.
