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October 22, 2024Russia President Vladimir Putin, who is currently facing sanctions and isolation from the West for invading Ukraine, is using the BRICS summit in Kazan as a way to demonstrate that Russia is not isolated. By hosting over 20 heads of state, including leaders from China, India, and Iran, Putin aims to showcase Russia’s global influence and partnerships, countering the West’s attempts to marginalize his country. The Kremlin presents the event as a major foreign policy success, despite Russia’s economic challenges and strained international reputation, the message is clear: efforts to isolate Russia have failed,” says Chris Weafer, founding partner of consultancy firm Macro-Advisory. “While there are severe cracks beneath the surface of the Russian economy, at the geopolitical level, Russia is showcasing its global partnerships.” This summit serves as a key element in the Kremlin’s narrative: despite the West’s efforts, Russia still has friends in powerful places and is not alone on the world stage.
BRICS, the group hosting the summit, stands for Brazil, Russia, India, China, and South Africa. It is often seen as a counterbalance to the Western-dominated world order, particularly the influence of the G7 nations. Recently, the group has expanded to include Egypt, Ethiopia, Iran, and the UAE, and Saudi Arabia has been invited to join. Together, the BRICS nations represent around 45% of the global population and generate more than $28.5 trillion in economic output—approximately 28% of the global economy. This growing coalition of nations, some of which are major players in energy, technology, and trade, positions itself as a significant force on the global stage.
Russia’s officials have hinted that more countries—about 30 in total—are interested in joining BRICS or forming closer alliances with the group. At this week’s summit in Kazan, there will likely be considerable discussion about BRICS as the “global majority,” presenting itself as a unified bloc of nations that can provide an alternative to the dominance of Western powers. Russia is eager to show that it is still relevant and that its partnerships with countries outside the Western sphere remain robust.
But what is the summit really expected to achieve? Beyond offering Putin a moment on the world stage, one of the Kremlin’s key objectives is to convince BRICS members to adopt alternatives to the U.S. dollar for global payments. For Russia, this is critical.
“A lot of Russia’s economic problems are tied to cross-border trade and payments, much of which is dominated by the U.S. dollar. “The U.S. Treasury holds significant power because of this, and Russia wants to break that dominance. They hope to encourage BRICS to create a new trade mechanism that bypasses the dollar, the euro, or any G7 currencies.” Such a system, if adopted, would reduce the impact of Western sanctions on Russia, making it less vulnerable to economic punishment imposed by the West. The Kremlin has long sought to create financial systems independent of Western influence, and BRICS offers a possible path toward that goal.
However, critics argue that BRICS is not as unified as it may appear. The group’s member nations have significant differences, making it challenging to form a cohesive strategy. “Likeminded” is not a term most would use to describe the current BRICS membership. Jim O’Neill, former Chief Economist at Goldman Sachs and the person who originally coined the term “BRIC” (before South Africa joined, turning it into BRICS), highlights the ongoing tensions between China and India.
“In some ways, it’s fortunate for the West that China and India rarely agree on anything. If they did, BRICS could have enormous influence,” O’Neill notes. The two Asian giants have a long history of border disputes and geopolitical rivalry, which often spills into their economic and diplomatic relations. “Trying to get China and India to cooperate on major economic initiatives is a never-ending challenge,” O’Neill adds, noting that these differences weaken BRICS’ potential to act as a unified counterweight to Western dominance.
It’s not just China and India that struggle with internal differences. Egypt and Ethiopia, two of BRICS’ newest members, are at odds over the construction of a dam on the Nile River, which has fueled a long-running diplomatic dispute. Similarly, despite recent talks of detente, Iran and Saudi Arabia remain long-standing regional rivals with conflicting interests in the Middle East. These differences raise questions about how much BRICS can accomplish as a unified entity.
“The idea that these countries are all going to fundamentally agree on something of great substance is, frankly, unrealistic,” says O’Neill. While there may be broad agreements on some issues, significant ideological, economic, and political differences make deep cooperation difficult.
This internal division contrasts sharply with Russia’s desire to present a united front. For Putin, BRICS represents an opportunity to signal that Russia is far from isolated, despite Western efforts. The summit in Kazan offers him a platform to show both the Russian public and the world that his country remains a key player on the global stage, building ties with nations outside the West and defying the international pressure that has been mounted against it.
However, not all BRICS members share Russia’s anti-Western stance. India, for instance, maintains good relations with Western powers, including the United States, and has expressed little interest in fully aligning with Russia’s vision of a new world order. Instead, India seeks to balance its relationships with both the West and countries like Russia and China. Other BRICS members may be similarly cautious about fully committing to Russia’s geopolitical ambitions, given their own national interests and relationships with Western nations.
Putin’s task in Kazan will be to downplay these divisions and project an image of unity. He will aim to emphasize common goals, such as increasing trade between BRICS members and reducing reliance on Western-dominated financial systems. This effort to create the appearance of solidarity is not just for the international community but also for the Russian domestic audience. The Kremlin is keen to show that Russia is not isolated and still has influential allies across the globe.
As the summit unfolds, the world will be watching to see how successful Putin is in achieving these objectives. Can he convince BRICS nations to move forward with alternatives to the U.S. dollar? Can he smooth over the internal divisions within the group long enough to present a united front? And, perhaps most importantly, can he show his own people that Russia is still a global power, despite the sanctions, the war in Ukraine, and his international pariah status?
For Vladimir Putin, the stakes are high. The Kazan summit may not solve Russia’s economic woes or lead to a complete realignment of global power. But it gives him a chance to demonstrate that, despite everything, Russia still has a seat at the table—and plenty of partners willing to stand by it side