New Delhi: Payment systems, strengthening cooperation with regards to banking systems, outreach and expansion of the organisation are some of the subjects expected to figure at the 16th summit of BRICS—an intergovernmental group comprising Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia and the United Arab Emirates (UAE)—which will begin in Kazan, Russia Tuesday.
“I am aware that there have been discussions on settlement systems and payment systems. There have been a number of discussions between our financial authorities. This, I think, is being discussed in the finance ministers’ track and the central bank governors’ track as well,” Foreign Secretary Vikram Misri explained at a special briefing on the BRICS summit Monday.
He added: “My understanding is that no final agreements have been reached yet. There have been intense discussions. There has been a certain amount of research that has been commissioned on these issues.”
The foreign secretary’s statement comes as Russian President Vladimir Putin has been pushing for an alternative to the current international messaging network for banking transactions, which is managed by the Belgium-based Society for Worldwide Interbank Financial Telecommunication (SWIFT).
Talking about how BRICS countries were working on such an alternative, Putin had said last week: “This is the exchange of financial information among central banks. An alternative to SWIFT, the one supporting international settlements.” His remarks were published by Russian state-owned news agency TASS.
For Moscow, an alternative to the SWIFT network is important as several Russian banks have been banned from accessing the interbank messaging network since Russia’s open war with Ukraine began in February 2022. The SWIFT network is one of the largest interbank communication systems in the world, with around 11,000 banks using the system.
In his briefing Monday, Misri said, “I think it is a fact that the countries have stressed the importance of the use of local currencies for settlement purposes, especially as it pertains to trade. Strengthening of corresponding banking networks among the BRICS partners and enabling settlements in local currencies is being encouraged.”
The summit is scheduled to take place from 22 to 24 October (Tuesday to Thursday). Prime Minister Narendra Modi will be travelling Tuesday morning to Kazan and will return to India Wednesday evening after attending the main plenary sessions at the BRICS summit. External Affairs Minister S. Jaishankar will be leading the Indian delegation Thursday for the BRICS outreach sessions with non-member countries.
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An expanded BRICS summit
This will be the first BRICS summit since the group expanded at the previous summit in Johannesburg last year. The founding members of BRICS are Brazil, Russia, India, China and South Africa, and the new member states are Iran, Egypt, Ethiopia and the UAE.
Argentina, which was invited to the organisation earlier this year, declined to join the grouping. Meanwhile, Saudi Arabia has not formally accepted membership of the organisation.
There are around 30 countries that have shown interest in joining the grouping, including Colombia, Sri Lanka and Turkey.
According to Misri, as many as 28 heads of state or government, along with five multilateral organisations, will be attending the summit in Kazan. The last day will see outreach sessions with different partners attending the summit.
Countries such as Thailand, Vietnam and Saudi Arabia have announced their delegations to the summit. Armenia, Azerbaijan, Belarus, Indonesia, Kazakhstan, Kyrgyzstan, Mauritania and Malaysia are some of the other nations that have been invited, according to reports.
Bilateral meetings expected
Modi is expected to hold bilateral meetings with a number of leaders on the sidelines of the BRICS summit, including one with Putin. On 12 September, the Russian president personally invited Modi to the summit, during an interaction with Indian National Security Adviser (NSA) Ajit Doval.
This would be the second bilateral meeting between the two leaders this year after the annual India-Russia summit, which took place from 8 to 9 July. One of the issues of friction between Moscow and New Delhi was the fate of nearly 100 Indians who were contracted to serve in the Russian military on the frontlines of Ukraine.
Misri also said that nearly 85 Indians have been returned to India and about 20 individuals remain in Russia.
“Our understanding is that nearly 20 people still remain [in Russia]. We are pressing our interlocutors for the early discharge of all remaining Indians in armed forces there,” he said.
Apart from the meeting with Putin, a bilateral between Modi and the new Iranian president, Masoud Pezeshkian—a first—is likely to occur as well.
Misri was non-committal about a bilateral meeting between Modi and Chinese President Xi Jinping. However, with the announcement of a resolution of issues on patrolling on the Line of Actual Control (LAC) announced by Misri Monday, there are higher chances of such a bilateral meeting occurring.
The two leaders last held a brief exchange on the sidelines of the 2022 G20 Bali summit.
(Edited by Radifah Kabir)
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