Putin says existing BRICS infrastructure is enough for cross-border payments

Putin says existing BRICS infrastructure is enough for cross-border payments

Delays in payments for trade with Russia’s major partners such as China or Turkey where banks are under pressure from Western regulators to scrutinise transactions with Russia have become a major headache for Russian companies and banks.

Before the summit, Russia outlined an alternative payment system in national BRICS currencies that would include a new messaging system and a network of national commercial banks linked to each other through the BRICS central banks.

“The question is very important today. One of the key issues is the problem of settlements,” Putin told the news conference after the summit.

The Russian-hosted summit of the BRICS nations — Brazil, Russia, India, China and South Africa — ended on Thursday.

© Reuters. Russian President Vladimir Putin attends a press conference at the BRICS summit in Kazan, Russia October 24, 2024. Alexey Maishev/BRICS-RUSSIA2024.RU Host Photo Agency via REUTERS

Putin said the existing financial messaging system, created by the Russian central bank as well as similar systems run by other BRICS central banks could be used to facilitate mutual payments in national currencies.

“But we are not inventing any separate joint system for now. What we already have is on the whole sufficient,” Putin said.

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