The BRICS economic bloc is deepening its ties with Russia, with trade between the two reaching unprecedented heights. As the US dollar continues to face headwinds, the alliance’s reliance on the greenback is waning.
According to Russia’s Ministry of Industry and Trade, trade between BRICS nations and Russia surged by a remarkable 28% in 2023, nearing the $300 billion mark. This upward trajectory has continued into 2024, with a 6.3% increase in the first five months alone.
“The positive dynamics continue,” said Anton Alikhanov, head of the Ministry, emphasizing the robust growth. “It is clear that there is a certain effect from the powerful reorientation of our commodity flows.”
This surge in trade comes as the BRICS bloc accelerates its push for de-dollarization. The bloc has been exploring local currency settlements as an alternative to the US dollar, a move that has gained traction amid Western sanctions on Russia.
India, a key BRICS member, is at the forefront of these efforts. Recent reports indicate that Russia and India are intensifying discussions to expand trade using their local currencies, the rupee and the ruble. This move aims to mitigate the impact of US sanctions on Russia’s economy.
Also Read: BRICS Payment System – A Global Threat To SWIFT Dominance?
Russian Economic Development Minister Maxim Reshetnikov confirmed the talks, highlighting the importance of reducing reliance on the dollar in bilateral trade. “We discussed how to facilitate rupee-rouble trade, how non-tariff measures are impacting our trade, and how they should be reduced,” Reshetnikov stated.
As the BRICS bloc and Russia deepen their economic cooperation and accelerate de-dollarization efforts, the global financial landscape is undergoing a significant transformation. The growing influence of these emerging economies could challenge the dominance of the US dollar in international trade.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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