After the BRICS expansion in 2024, the alliance officially accounts for 42% of the global oil and gas reserves. If that wasn’t enough, BRICS now accounts for the majority of the rare-earth metals reserve totaling to 72%. This gives the alliance an added advantage in global trade in the oil and rare-earth metals sectors.
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BRICS countries complement each other for the extraction of critical minerals and production. The cooperation could leas to mutual trade within BRICS members and ensure the continuity of the supply. The alliance can also decide on the stability of the prices and be ahead in decision-making.
BRICS 2024 Summit: Oil & Rare-Earth Metals To Be Discussed
Latest reports indicate that the alliance will discuss oil and rare-earth metals trade in the next BRICS summit. The geological trade deals could be rewritten giving the bloc an undue advantage in settling cross-border transactions. “Prospects for cooperation between the BRICS countries in the field of studying, developing and rational use of mineral resources,” is on the cards, read a report.
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“One of the possible areas of cooperation in this sphere is to expand the mutual trade in mineral commodities and metals for the purpose of ensuring continuity of supplies and stability of prices,” said Evgeny Petrov, the Head of the Russian Federal Subsoil Resources Management Agency Rosnedra. He added, “The simple analysis shows that accession of new members to BRICS will provide for 72% of world resources of rare-earth metals.”
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Also, if BRICS uses local currencies for rare minerals trade, the US will dollar will begin to face deficits. Read here to know the major US sector that will be severely affected if BRICS ditches the dollar for trade. The BRICS bloc is adding all commodities under its sleeves and could turn the alliance’s fortunes in the coming years.