Durban - Russian President Vladimir Putin said Russia’s economy had stabilised over the first six months of the year, despite “unlawful sanctions that seriously hinder the export of Russian food products”.
Putin, President Cyril Ramaphosa, Chinese President Xi Jinping, Indian Prime Minister Narendra Modi and Brazil’s President Luiz Inácio Lula da Silva addressed the 15th BRICS Summit in Sandton yesterday.
At least 40 heads of state, scores of government representatives, as well as local and international dignitaries, delegates and 2 500 members of the media are attending the summit.
Putin delivered his address via video link while Foreign Minister Sergey Lavrov is leading the Russian Federation delegation in South Africa.
Putin said the sanctions had complicated Russian logistics, insurance and bank payments.
“Russia is being deliberately obstructed in the supply of grain and fertiliser abroad and at the same time we are hypocritically blamed for the current crisis situation in the world market.”
Putin said Russia had pulled out of the Black Sea grain deal and was being blamed for rising food prices, but the majority of the grain exported by Ukraine was going to wealthy countries.
“Only 3% went to the least developed countries.”
Putin said Russia would provide six African countries with 25 000 to 50 000 tons of grain, including free delivery of the cargo, and that negotiations with partners were ongoing.
He added that the summit would discuss in detail the question of switching trade between member countries away from the US dollar and into national currencies, a process in which the BRICS’ New Development Bank would play a big role.
“The objective, irreversible process of de-dollarization of our economic ties is gaining momentum,” he said.
Wang Wentao, Chinese minister of commerce, speaking on behalf of Xi, said the formation of the BRICS Business Council had been crucial to the bloc’s co-operation.
“The council has stayed true to its mission and helped sustain global economic growth. Changes in the world are happening like never before,” Wang said.
Ramaphosa received a Chinese delegation led by Xi in a state visit at the Union Buildings in Pretoria before the commencement of the summit.
Ramaphosa, Xi and officials signed 10 trade and bilateral agreements before heading out to join other leaders for the main summit.
Modi said despite the volatility in the global economy, India is the world’s fastest growing major economy.
“Very soon India will become a $5 trillion economy. India has converted crisis and challenges into opportunities for economic growth.
“Over the past few years India has introduced reforms that have led to ease of doing business in the country.”
Lula said since the first BRICS summit, these countries’ share in the global economy has been increasing.
“We have surpassed the G7, accounting for 32% of world GDP.”
He said there is “dynamism of economies in the Global South and BRICS is its driving force”.
Ramaphosa said the BRICS countries had forged stronger ties among the many bodies that had been established since the bloc was formed.
“The BRICS Business Council is a vital and vibrant platform for strengthening ties between the respective countries and forging common perspectives on inclusive economic growth and investment.
“Changes in the BRICS economies in the past decade have done much to change the shape of the global economy. These countries now account for a quarter of the global economy and a fifth of global trade.”
Ramaphosa said the conglomeration of the five countries had had a major global impact.
He said a new wave of protectionism and unilateralism undermined global economic growth and development.
“We need to re-affirm the position that economic growth must be underpinned by transparency, inclusiveness and a multilateral trading system that supports a developmental agenda.
“We require a fundamental reform of the global financial institution so they can be more agile and responsible for the challenges facing the developing economy,” Ramaphosa said.