The war in Ukraine and an alternative to the Western payment system: statements from the final declaration of the BRICS summit have emerged

The declaration emphasizes the need to resolve the conflict through “negotiations and diplomacy.”

It also “welcomes proposals” for mediation in the peaceful settlement (apparently referring to the China-Brazil peace initiative).

“We recall the national positions regarding the situation in and around Ukraine, as outlined at relevant forums, including the UN Security Council and the UN General Assembly. We emphasize that all states should act in accordance with the goals and principles of the UN Charter in their entirety and interconnection. We welcome the relevant proposals for mediation and good offices aimed at ensuring a peaceful resolution of the conflict through dialogue and diplomacy,” the declaration states.

The BRICS resolution also announces plans to create a de facto alternative to the Western international payment and insurance system.

“We recognize the importance of exploring the possibility of linking the financial market infrastructure of BRICS countries. We agreed to discuss and explore the possibility of establishing an independent cross-border clearing and settlement infrastructure, BRICS Clear, which would complement the existing financial market infrastructure, as well as an independent BRICS reinsurance capacity, including the BRICS (Re)Insurance company, with voluntary participation,” the declaration says.

The declaration also mentions that BRICS countries will promote “the use of national currencies in financial transactions between BRICS countries and their trading partners. We call for the strengthening of correspondent banking networks between BRICS countries and the facilitation of settlements in national currencies.”

“We instruct the finance ministers and central bank governors of our countries to duly continue considering the use of national currencies, payment instruments, and platforms, and to report the results at the next presidency,” the declaration states.

Meanwhile, a video has emerged of Turkish President Recep Tayyip Erdoğan arriving at the BRICS summit in Kazan.

Erdoğan wants Turkey, a NATO member, to join the organization led by Russia and China, according to the German tabloid Bild.

Ankara wants to make the West “jealous” because it feels it is being “avoided.” This could worsen Ankara’s relations with NATO, the publication suggests.

Jonathan Spicer, head of Reuters’ Turkish bureau, highlights the background of Erdoğan’s relationship with Putin and his contradictions with the West.

Their relationship with the Russian president “can sometimes be tense, but both reject U.S. influence and define the course of military conflicts differently, from the South Caucasus to Syria and North Africa.”

Putin has admitted that Erdoğan can be difficult but calls him a “reliable partner.” Erdoğan has spoken of “shared understanding, mutual trust, and respect.”

Turkey opposed Russia’s invasion of Ukraine and supplied Kyiv with attack drones.

They supported opposite sides in the wars in Syria and Libya, and were on the same side in the conflicts between Armenia and Azerbaijan over Nagorno-Karabakh.

In 2019, Turkey angered its NATO allies by purchasing Russian S-400 missiles. The U.S. even imposed sanctions on Turkey’s defense industry and excluded it from the F-35 fighter jet program, in which Turkey was both a manufacturer and a buyer.

In early 2022, as energy prices soared, Turkey found itself in a vulnerable position as it imports almost all of its energy needs. The Turkish economy suffered greatly, and Russia, Turkey’s largest gas supplier, allowed Ankara to defer payment for gas imports until 2024. This helped Erdoğan stabilize the lira ahead of the 2023 elections, which he won. After the elections, the currency once again dropped to record lows.

“In recent months, Turkey has expressed a desire to join the BRICS group. Ankara sees BRICS as an opportunity to expand economic cooperation with member countries, not as an alternative to Western ties and NATO membership. In June, U.S. Ambassador to Turkey Jeff Flake told Reuters that he hoped Turkey would not join BRICS. And if it did, that such a step would not change Turkey’s orientation towards the West,” Jonathan Spicer reminds us.