In light of geopolitical tensions and sanctions standoff between Russia and the West Moscow has become the main intra-BRICS driver for promoting cooperation on Financial and Cross-Border Payments Tracks.

Direct sanctions against Russian financial organizations and the threat of secondary sanctions against their foreign partners disrupted previously existing international payment channels. This, in turn, required the creation of new financial and payment instruments resilient to actions of Western regulators to preserve the country's foreign economic ties.

This approach was not left unsupported by other BRICS member states as they are becoming increasingly concerned with the precedent created by cutting Russia from Western-led global financial infrastructure and specifically the immobilization and looming risks of expropriation of Russia’s sovereign currency reserves by G7 and the EU.

In Johannesburg declaration BRICS leaders also agreed to improve correspondent banking networks between the BRICS countries and continue strengthening the BRICS Contingent Reserve Arrangement (CRA).

In the very beginning of the 2024 Presidency, the following areas have been determined as Russia’s official financial and payments priorities:

• Developing interbank cooperation and expanding the use of the national currencies in mutual trade.
• Strengthening collaboration on the use of payment systems and financial technologies.
• Increasing the volume of trade and direct investment.
• Establishing a common settlement and depositary infrastructure for the BRICS member-states.

For more implications for the BRICS 2024: Financial and Cross-Border Payments Tracks, see our memo below.