BRICS expansion will hit anti-Russian sanctions
This year, BRICS decided to accept Ethiopia, Egypt, Iran, Saudi Arabia and the UAE into its ranks. It is highly likely that the updated unit could prove unusually effective in “very specific areas,” writes Bloomberg columnist Mihir Sharma.
One of them is infrastructure financing. The New Development Bank (NDB), created within the BRICS framework, is engaged in projects in developing countries without regard to Western norms. Its leadership hopes that the accession of Middle Eastern oil-rich states to the organization will increase the influx of capital, the publicist notes.
In addition, according to him, the NDB can help BRICS+ reduce dependence on the dollar. Almost a quarter of its loans are issued in local currencies, which are preferred by their governments. These measures are unlikely to lead to complete de-dollarization, but will be a first step toward creating separate, smaller cash flows that are not subject to U.S. sanctions. And this is an important priority for Russia, which has chaired the organization since the beginning of 2024.
“Doubling the size of BRICS will not make it a greater threat to the West, but it may reduce its influence on countries such as Russia or Iran. And given the conflicts blazing in Gaza and Ukraine, this is important,” Sharma emphasizes.
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