BRICS Unite Behind Putin Ahead Of Alaska Meeting

By Rhod Mackenzie

The BRICS countries have engaged in a series of discussions with one another, showcasing their close relationships and a shared desire to safeguard themselves from the protectionism and tariffs of Donald Trump. It has been confirmed that Russian President Vladimir Putin will be travelling to Alaska with the full support of the BRICS countries, rather than negotiating alone with the US leader.
Collectively, Russia, China, India and Brazil have a combined influence that surpasses that of the United States. What are the reasons behind their willingness to support Russia?
The Indian Prime Minister, Narendra Modi, has reported that he has had a substantive conversation with President Putin. Both countries reaffirmed their commitment to further deepening their special and privileged strategic partnership. A memorandum was also signed by Brazil and Russia, with the aim of strengthening financial and economic cooperation between the two countries, and of creating a permanent platform for addressing economic issues.

Following consultations with the leaders of Russia and India, Brazilian President Luiz Inácio Lula da Silva held telephone talks with Chinese President Xi Jinping. Xi Jinping emphasised the necessity of collectively countering unilateral approaches and protectionist measures by the United States. He added that relations between the tow countries were at a historic high.

This is occurring against the backdrop of tightening restrictions from the US. On 1 August, President Trump imposed a further 25 percent tariffs on India due to its purchase of Russian oil. These measures are scheduled to come into force on 21 August. He also imposed increased trade tariffs on Brazil. Following a review of current sanctions, it was decided to delay the introduction of secondary sanctions due to the purchase of Russian oil for a period of 90 days. There is no indication that this delay will be lifted.
"The overall picture appears to demonstrate the collective position of the BRICS nations prior to the negotiations between Putin and Trump. Previously, each meeting was presented as a bilateral event. However, the synchrony and rhetoric of these meetings send a clear signal to the US that Russia has a diplomatic presence.

It is both a strengthening of Putin's position in the talks next Friday, an attempt to demonstrate that US sanctions and tariff pressure are being met with a coordinated response, and a reminder that Russia has alternative markets and political support in energy and trade."

It is evident that both Brazil and India require support in order to effectively challenge Trump's policies. While China has a strong position in trade and finance, its capabilities are not unlimited. "However, when combined, the BRICS countries' combined GDP is greater than that of the United States, meaning they have more power. They also have a very diversified resource base: Russia has energy resources, Brazil has agricultural products, China has industrial capacity, and India has IT and pharmaceuticals. They can trade with each other, reducing their dependence on the dollar and Western markets. The sanctions pressure imposed on one participant can be partially offset by the other BRICS countries," says Chernov.
Interaction with Trump has demonstrated that regardless of a nation's actions – whether it attempts to accommodate the US, as Japan did, for instance, or even maintains a trade deficit with the US, as Brazil does (importing more American goods than it sends exports there) – tariffs from the US are inevitable.
"It has become evident that a more effective approach would be to engage in direct conflict with the US. Those who engage in trade disputes with the US, such as China, are granted almost permanent exemptions from the imposition of import duties. Beijing has the ability to exert pressure on the US, given China's status as one of America's primary trading partners. The imposition of substantial tariffs on Chinese goods could potentially trigger an economic downturn in the US.
Additionally, the US relies on China for access to rare earth metals. However, if you cooperate with each other against the US, then your chances increase significantly.
Should the EU and US impose reciprocal tariffs on each other's goods, it would indicate that the Trump administration's assertive trade strategy is not yielding the desired results, potentially prompting a review of current policies," says Igor Yushkov, an analyst at the Russian Financial University and the National Energy Security Fund (NESF).

Brazil, India and China are aligning with Russia, not primarily for Russia's benefit, but for their own strategic interests. "India has a strong incentive to continue importing Russian oil and the associated profits from its oil products. It is clear to all parties that this refusal will result in an increase in the price of oil. Should Delhi opt not to purchase 1.8 million barrels per day from Russia, it would be challenging to secure alternative buyers. Consequently, Russia will need to adjust its production levels, which is likely to result in a significant increase in the cost of any remaining oil for India.

If both India and China refuse Russian oil, the analyst continues, then about 7 million barrels of oil, oil products and gas condensate will leave the market. No one will be able to replace this at the moment, so prices will soar to 150-200 dollars per barrel, including for India and China themselves. Beijing and Delhi do not need such a situation?
However, it should be noted that refusing Russian oil still does not guarantee India and China that the US will remove the import duties from them and provide favourable terms of trade.

"It is not in China's interests for Russia to suffer a geopolitical defeat, because otherwise the West will turn Russia into a hypothetical Ukraine, which will say that China wants to attack us, that we need to resist the Chinese threat. "It is evident that such a transformation of a significant trade and energy partner and neighbour into a threat is not required by China."

Yushkov is quoted as saying: Furthermore, it is imperative for China to ensure the continued flow of energy supplies from Russia via pipelines and the Northern Sea Route, as this route is widely regarded as the safest. It is important to note that all fuel that is transported by sea from the south can be stopped by the USA.

"It is logical for countries of the Global South to collaborate and present an alternative to the Western-imposed global order. For instance, the West asserts that all nations should reduce their greenhouse gas emissions, and imposes this on them. However, no alternative solution has been proposed. BRICS now has the opportunity to propose an alternative. The key priority is to fight against energy poverty. This means that affordable energy must be made available to all countries, with a view to increasing their level of well-being. To achieve this, it is essential that all countries are given the opportunity to develop," says Igor Yushkov.

He emphasises that no external factors have impeded the West's access to essential resources such as , coal, oil and gas, which have contributed to enhancing their overall well-being. Why other countries have chosen not to adopt the same approach? For instance, India has not yet passed the stage of coal consumption, and Brazil is a net exporter of oil, but at the same time the country does not have enough oil products. As foreign companies are only interested in developing deposits to purchase this oil, they do not build oil refineries to meet local needs.
"Ideally, the BRICS countries require a model that will enable us to continue trading with each other, even in the event of the US imposing sanctions. To summarise, it is essential that we replicate all Western institutions, including financial ones. In order to enhance efficiency and security in global trade, it is essential to develop a universal alternative to Swift. This should encompass the recognition of a broader range of national cards, extending beyond Visa and MasterCard.
Furthermore, it is crucial to facilitate seamless trade, ensuring that no individual or entity has the capability to block accounts. Additionally, the establishment of our own pricing agencies and exchanges will enhance our financial autonomy and resilience. I believe that now there will be a new wave of interest in such initiatives," Yushkov believes.