Putin says Russia is rerouting commerce to China and India

“We’re actively engaged in reorienting our commerce flows and international financial contacts in the direction of dependable worldwide companions, primarily the BRICS international locations,” Putin mentioned in his opening video deal with to the members of the digital BRICS Summit.

The “BRICS” acronym refers to a casual grouping of the 5 growing economies.

Based on Putin, commerce between Russia and the BRICS international locations elevated by 38% and reached $45 billion within the first three months of the yr.

“Contacts between Russian enterprise circles and the enterprise neighborhood of the BRICS international locations have intensified,” Putin mentioned. “For instance, negotiations are underway to open Indian chain shops in Russia [and to] improve the share of Chinese language automobiles, gear and {hardware} on our market.”

Russia can also be ramping up oil exports to China and India, which have been snapping up barrels at a hefty low cost. China’s crude imports from Russia soared to a file degree in Could, ousting Saudi Arabia because the nation’s prime provider.

Putin added that Russia’s system for messaging between monetary establishments is open to connecting banks from the 5 international locations, and that Moscow is discovering new methods to transact with out counting on currencies such because the greenback or the euro.

“Along with BRICS companions, we’re growing dependable different mechanisms for worldwide settlements,” Putin mentioned.

In his deal with, Putin accused the West of neglecting “the essential ideas of [the] market financial system” corresponding to free commerce.

“It undermines enterprise pursuits on a world scale, negatively affecting the wellbeing of individuals, in impact, of all international locations,” he mentioned.

The BRICS summit, which is hosted by Beijing, is Putin’s first worldwide discussion board with the heads of different main economies since he ordered the invasion in Ukraine in late February.

Sanctions from the West have minimize Russia off from giant swaths of the worldwide financial system and pushed the nation right into a deep recession. However Moscow continues to earn cash off exports, particularly as vitality costs rise. The Worldwide Vitality Company estimates that Russian oil export revenues rose to about $20 billion in Could.

— Julia Horowitz contributed reporting.