Russian President Vladimir Putin hosted the BRICS Business Forum on Friday, emphasising the importance of close economic partnership among BRICS nations and highlighting the group’s growing economic influence on the world stage.
The forum, held in Moscow ahead of the BRICS Summit in Kazan next week, brought together over 1,000 business leaders from across the BRICS countries, including representatives from new members Saudi Arabia, Iran, Egypt, Ethiopia, and the United Arab Emirates, who joined the group on 1 January 2024.
Putin highlighted the significant role of the BRICS group in global economic growth, noting that the association’s total GDP exceeds US$60 trillion, surpassing that of the G7 and continuing to grow. He pointed out that in 1992, the G7 accounted for 45.5 percent of global GDP while BRICS countries accounted for 16.7 percent. By 2023, BRICS countries had grown to account for 37.4 percent of global GDP while the G7 had fallen to 29.3 percent.
“The gap is increasing and will continue to grow; this is inevitable,” Putin said, emphasizing the trend’s “absolute logic.” He noted that over the past decade, BRICS states have accounted for over 40 percent of the global GDP increment.
The Russian president highlighted the impressive economic performance of BRICS nations, stating that by the end of 2024, BRICS countries are forecasted to post four percent growth on average, exceeding the G7 growth rate of 1.7 percent and the global average of 3.2 percent.
Putin also stressed the importance of developing platforms for communication, technological and educational standards, financial systems, payment tools, and long-term investment within the BRICS framework. He emphasized the need for the group to build economic sovereignty through close partnership between self-sufficient economies, expanding their potential and opening up new opportunities.
The New Development Bank, which serves as an alternative to Western financial mechanisms, was also highlighted as a vital tool for boosting financial cooperation within BRICS. The bank is expected to become a major investor in large-scale technology and infrastructure projects within the BRICS space and the Global South.
Putin also addressed the importance of transport connectivity within BRICS, highlighting initiatives such as the Northern Sea Route and the North-South Corridor as key trade routes linking major industrial, agricultural, and energy hubs with consumer markets. He highlighted the ongoing work to develop the Northern Sea Route and the North-South transport corridor, which connects Russia’s ports in the northern seas and the Baltic region with terminals on the coast of the Persian Gulf and the Indian Ocean.
The Russian president also acknowledged the importance of cooperation in innovation and the digital economy within BRICS. He discussed efforts to develop e-commerce, introduce the Internet of Things and artificial intelligence, and process Big Data. Putin announced the upcoming opening of a BRICS competence centre under the United Nations Industrial Development Agency (UNIDO), aimed at deepening cooperation in the digital transformation of industry.
He called for the creation of seamless digital infrastructure within BRICS, stressing the need for coordinated approaches among businesses, the public, and authorities regarding the use of biometrics and ensuring information security.
Putin concluded by reiterating Russia’s openness to mutually beneficial business cooperation. He highlighted the creation of a globally competitive environment for domestic and foreign players to attract capital and technology, particularly in partnership with BRICS members. However, he stressed the importance of developing and strengthening BRICS platforms that ensure economic growth through technological solutions, financial and investment mechanisms, the expansion of logistics, and other key areas.
“I am confident that taking advantage of BRICS’ impressive capabilities – in particular, its large population and wealth of natural resources – will bring maximum benefits to our countries, businesses, and all our citizens,” Putin concluded.
The Russian president expressed confidence that the forum’s outcomes would be reported at the leaders’ meeting in Kazan. He invited attendees to explore the city of Moscow, describing it as a source of pride for Russia.
The BRICS Business Council is expected to present its report on the forum’s outcomes at the BRICS summit in Kazan.
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