BRICS Summit Launches New Payment System and Expands Membership

The 16th BRICS summit, held in Kazan, Russia, from October 22 to 24, 2024, expanded the organization’s membership and established a new financial framework intended to reduce reliance on Western interbank systems.

The summit was the first to include Egypt, Ethiopia, Iran and the United Arab Emirates as full members. These nations joined the existing bloc consisting of Brazil, Russia, India, China, and South Africa, following their accession at the 15th BRICS summit.

Financial Infrastructure and BRICS Pay

A primary outcome of the Kazan summit was the introduction of BRICS Pay, a payment system designed to facilitate international settlements. The system is intended to enable the interchange of financial information and transactions between the central banks of partnered nations.

BRICS Pay was developed to serve as an alternative to the Western interbank system, specifically SWIFT. By creating an independent mechanism for financial communication and settlement, the member nations aim to streamline transactions across the bloc.

The Kazan Declaration and Global Governance

The participating leaders adopted the Kazan Declaration, which focused on the theme Strengthening Multilateralism for Fair Global Development and Security.

Within the declaration, BRICS nations endorsed the reform of the United Nations and the UN Security Council. The member states also called for the full participation of the State of Palestine in the United Nations, though they noted This represents contingent upon the implementation of a two-state solution.

The summit addressed the conflict in the Palestinian Territories, with leaders issuing a statement calling for the establishment of a Palestinian state based on the 1967 borders. The Kazan Declaration expressed deep concern regarding the humanitarian situation in Gaza and the West Bank, specifically highlighting the escalation of violence that has led to displacement and significant civilian harm.

International Relations and Security

Palestinian President Mahmoud Abbas attended the proceedings in Kazan. The summit included contributions from the United Nations, with Secretary-General António Guterres addressing the assembly.

During his address, Secretary-General Guterres spoke regarding the Russian invasion of Ukraine and the necessity of a resolution to the conflict.

We need peace in Ukraine. A just peace in line with the UN Charter, international law and UN General Assembly resolutions.

António Guterres, UN Secretary-General

The summit was chaired by Vladimir Putin, the President of Russia, and focused on the integration of the new member states into the organization’s political and economic structures.