Thu Sep 26 14:40:05 UTC 2024: ## BRICS Nations Collaborate on New Payment System to Circumvent Western Sanctions

**Moscow, Russia** – President Vladimir Putin announced that BRICS member nations are jointly developing a new payment and settlement framework for trade within the bloc. The move comes amid ongoing challenges for Russia in receiving payments for energy exports due to Western sanctions imposed following the Ukraine conflict.

During his speech at the Russian Energy Week forum, Putin emphasized that the new system will allow BRICS countries to “create conditions for the effective and independent servicing of all foreign trade” amongst themselves. He added that Russia is already actively switching to using national currencies in trade with BRICS countries, with the ruble’s share in Russia’s foreign trade operations nearly tripling between 2021 and 2023.

The development of this new system is seen as a direct response to the difficulties Russia faces in accessing the SWIFT international banking system. The move aligns with BRICS nations’ efforts to reduce their reliance on the US dollar and create alternative financial mechanisms.

Some experts believe that the new BRICS payment system could potentially lead to a decline in the US dollar’s dominance as a global reserve currency, sparking concerns about its impact on the US and global economies.

The BRICS summit, hosted by Russia in Kazan from October 22-24, is expected to provide further details about the new payment system. The summit will also see the participation of newly admitted members Iran, Egypt, Ethiopia, and the UAE, marking a significant expansion of the bloc’s influence.

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