Vladimir Putin accuses the West of violating “all fundamental norms and principles of free trade” and vows to dedollarize the global economy.
The ongoing BRICS summit may be of historic significance. Currently, the group includes Brazil, Russia, India, China and South Africa, but more than 40 countries are seeking to join the alliance, with more than 20 already formally applying.
The summit will be attended by Chinese leader Xi Jinping, Indian President Narendra Modi, Brazilian President Luiz Inacio Lula da Silva and South African leader Cyril Ramaphosa. Vladimir Putin was present via video link because he fears being arrested in connection with an arrest warrant issued by the International Criminal Court in The Hague.
Putin announces de-dollarization of the economy
During his speech, Putin expressed his belief that the BRICS will expand to more countries, eventually leading to the departure of the dollar as the world’s main trading currency.
“The objective, irreversible process of dedollarization of our economic ties is gaining momentum and efforts are being made to develop effective mechanisms for cross-settlement and monetary and financial control,” he assured.
– As a result, the share of the dollar in export-import transactions within the BRICS is falling: last year it was only 28.7 percent. he said.
Putin blames the West
In his speech to the participants of the BRICS Business Forum, the Russian president accused the West of using the war in Ukraine instrumentally and assured that the Russian economy would emerge stronger from the conflict.
“The illegal practice of sanctions, the illegal freezing of sovereign assets of the state, and in fact a violation of all fundamental norms and principles of free trade, economic life, which until recently seemed inviolable,” Putin said.
President Rosi accused the West of rising inflation, high prices and blamed it for the poor economic situation of African countries. “The immediate consequence of this is resource scarcity, rising inequality, rising unemployment and exacerbation of other chronic problems of the global economy,” he said.
As he emphasized, the rise in food prices is having a particularly negative impact on the situation in poor countries.
Grain crisis
About the grain crisis. Putin stressed that a return to previous solutions is only possible if the conditions set by Russia are met.
– Russia deliberately hinders the supply of grain and fertilizers abroad and at the same time hypocritically accuses us of the current crisis situation on the world market. This was evidenced by the implementation of the so-called grain agreement, concluded with the participation of the UN Secretariat, which was initially aimed at ensuring global food security, reducing the risk of hunger and helping the poorest countries – he said.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
