BRICS Chamber calls for fund transfer solutions at Kazan summit
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The lack of common financial systems, such as SWIFT or the Indian Financial System Code (IFSC), is causing money to get stuck between countries like Russia and India, according to the vice-chairman of the Chamber of Commerce.
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Russian President Vladimir Putin awaits his meeting with Iranian Parliament speaker Mohammad Bagher Ghalibaf on the sidelines of the BRICS Parliamentary Forum in St. Petersburg, Russia, Thursday, July 11, 2024 (Valeriy Sharifulin, Sputnik, Kremlin Pool Photo via AP)
BRICS Chamber of Commerce and Industry vice chairman, Sameep Shastri, told Sputnik on Thursday that the chamber expects the leaders of the BRICS nations to address the issue of fund transfers among member states during the bloc's summit in the Russian city of Kazan.
"The biggest problem that you see in BRICS+ nations is [that] we don't have a SWIFT code or an IFSC [Indian Financial System Code] code, which is commonly used for trading, where the business houses are really lacking is the transfer of the money. That's where they are getting stuck. Either the money is getting stuck in Russia or the money is getting stuck in India. So, we are looking forward to get a resolution from the state heads that, you know, will come up with a better solution," Shastri said on the sidelines of the BRICS Urban Future Forum in Moscow.
India-Russian ties strengthening
India and Russia have maintained a strategic partnership, particularly in defense and energy, for several decades.
India remains one of Russia’s largest defense clients, acquiring weapons systems such as the S-400 air defense system and collaborating on the BrahMos cruise missile.
Bilateral trade between the two countries has surged in recent years, driven largely by India's imports of discounted Russian crude oil, which have helped to curb inflation in India.
However, a significant trade imbalance persists, with India seeking to boost its exports to Russia, particularly in the pharmaceutical and agricultural sectors.
Both nations are also working on expanding their energy cooperation, particularly in nuclear power, with the Kudankulam Nuclear Power Plant as a key project.
In response to sanctions and geopolitical shifts, India and Russia have explored using national currencies for trade to reduce reliance on the dollar.
Strategic collaboration extends into space exploration, with India and Russia partnering on astronaut training for India's first manned space mission.
Despite India’s growing ties with Western countries, it continues to prioritize its "Special and Privileged Strategic Partnership" with Russia.
Their mutual interest in a multipolar world order ensures that this relationship remains a key aspect of both countries' foreign policies​.
Read more: India: Trade with Russia not temporary
Founded in 2009, BRICS is an intergovernmental organization consisting of Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the UAE.
Russia holds the rotating presidency of the BRICS group for 2024. The BRICS leaders are set to attend the summit in Kazan from October 22-24.
