Russia Wants BRICS to Replace The IMF

“The IMF and the World Bank are not working in the interests of BRICS countries.

Russia Wants BRICS to Replace The IMF

Russia's Finance Minister Anton Siluanov takes part in talks in Saint Petersburg, Russia June 6, 2024.

Today, Reuters reported that Russia is calling for an alternative to the International Monetary Fund (IMF) as it looks to counter Western influence ahead of the BRICS summit this month. As the chair of BRICS, which now includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, the UAE, and Saudi Arabia, Russia is hosting top BRICS finance and central bank officials in Moscow to discuss this initiative.

Russian Finance Minister Anton Siluanov, leading the discussions, criticized the Western-controlled global financial system and the roles of the IMF and the World Bank. He emphasized the need for BRICS to create new institutions aligned with its interests, stating, “The IMF and the World Bank are not working in the interests of BRICS countries. We need to establish new frameworks or even new institutions within BRICS.”

Since the invasion of Ukraine in 2022, Russia’s financial system has been heavily impacted by Western sanctions, with its forex reserves frozen and access to international capital markets restricted. Russia has also faced delays in transactions with its trading partners, including BRICS members, as banks fear punitive actions from Western regulators.

Elvira Nabiullina, Governor of Russia’s central bank, had previously mentioned the idea of a BRICS Bridge payments system to link the financial systems of member countries, but progress has been slow. The New Development Bank, established in 2015, remains the only financial institution BRICS has developed so far, aimed at financing infrastructure and sustainable development projects for its members and other emerging economies.