Billed as one of the bloc’s most vital gatherings, BRICS was poised to have an eventful week. Moreover, with the alliance growing by six countries and developments that could have massive geopolitical implications, we break down four of the biggest takeaways from the BRICS 2023 Summit.
All eyes were on expansion, as the bloc had long explored the idea. Not only did that come to fruition, but it has also paved the way for a continued shift in the global economic order. Subsequently, the maneuvers made by the alliance have certainly set them on an upward trajectory.
BRICS Expansion is Now a Reality
The talk of the geopolitical world was the potential expansion of the BRICS bloc. With many expecting consensus on guidelines, the alliance went a step further. Officially adding six countries to the list of members.
The addition of Saudi Arabia, Iran, the United Arab Emirates, Argentina, Egypt, and Ethiopia is a landmark moment. Not only does it signify the first expansion effort of the bloc since 2010, but it will have ramifications for the geopolitical world.
Saudi Arabia headlines members joining the collective and bringing with them tremendous de-dollarization potential. Subsequently, those economic ramifications are certainly another key takeaway from the 2023 BRICS Summit.
BRICS De-Dollarization Could Reach New Levels
Also Read: BRICS to Officially Abandon the US Dollar
With the arrival of the six new BRICS countries, the bloc now has six of the nine largest oil producers in the world. Moreover, with 90% of all oil sales taking place in US dollars, that development could have massive de-dollarization ramifications.
The United States had already expressed concern over Saudi Arabia shifting oil sales outside of the greenback. Now that it has joined the alliance, it is likely to adopt the local currency initiative the bloc has been outspoken about.
Additionally, Iran and the UAE are also among the top oil producers. Subsequently, increasing the promotion of the bloc’s local currency. Therefore contributing to the de-dollarization efforts that the bloc has embraced over the course of the last few months.
Notable Absences For BRICS Leaders
Although more than 40 heads of state were present, a key takeaway from the 2023 BRIC Summit was that there were some notable absences. Specifically, in the form of Vladimir Putin and a surprising absence from Chinese President Xi Jinping during an important speech on Tuesday’s festivities.
The speech, which publications had expected to be delivered by Jinping, was delivered by the country’s Commerce Minister, Want Wentao. However, following the speech, he was seen present at a dinner later that night. Still, his missing presence was a point of concern for many.
Alternatively, Putin was not physically present at the summit, but that was expected. Still on the receiving end of an ICC arrest warrant, Putin was always set to attend the summit via video link from Moscow.
China and India Border Talks Reach Critical Development
Leading up to the event, the discussions between China and India regarding ongoing tensions were vital. Subsequently, a key takeaway from the 2023 BRICS summit is that both countries have withdrawn thousands of deployed troops from the border.
Both countries released a joint statement leading up to the event. However, they resumed talks on Thursday, with de-escalation as the goal. Subsequently, those talks seemed to have been positively received.
Subsequently, CBS reported that the relations between countries were “conducive to peace, stability, and the development of the world and the region.” A moment that will certainly have important ramifications for the economic alliance as a whole. The relationship between the two countries has long been scrutinized.