Brics likely to focus on closer energy partnerships among members

16th Brics Summit in Russia's Kazan to be the first with new members

The 16th Brics Summit beginning Tuesday in Kazan, Russia, is expected to see more focus on creating a sharper energy policy for Brics that ensures closer partnership among members in both energy security and energy transition, official sources said. The same is expected to be a part of the Kazan declaration, currently being negotiated, they added.

The bloc is also expected to proceed on improving non-dollar-based payment systems as a priority for Russia, petroleum ministry officials said. India continues to be the second-largest buyer of Russian crude, closely following China. Russia remains the largest source of crude for India for a year-and-half now. In September, oil imports from Russia stood at 1.79 million barrels per day (bpd), up from 1.61 million bpd in August, estimates made by London-based commodity data analytics provider Vortexa, which tracks ship movements to estimate imports, show.

Brics energy ministers had met in September on the sidelines at the Energy Week International Forum in Russia. Subsequently, Russian President Vladimir Putin had last week emphasized the dominance of Brics countries — Russia, India, China, and South Africa — in essential markets such as energy, metals, and food that are critical to ensuring sustainable economic development.

India and Russia have been exploring a national currency settlement system to reduce their dependence on the US dollar. Under the mechanism, central banks of the two countries are reportedly trying to set a direct exchange rate between their currencies, by deciding on a reference rate, instead of pegging it against the US dollar.

New members

The latest Summit will also be the first with Egypt, Saudi Arabia, the UAE, Iran and Ethiopia participating as members, and a decision on whether to expand membership further is expected. The sixth entrant, Argentina, has pulled out after initially joining last year. Integration of the new members will remain a priority of the Summit, foreign secretary Vikram Misri said on Monday. "Strengthening economic cooperation, promoting cooperation for energy, food security, science, healthcare, environmental protection, culture, sports, youth exchanges, and civil society are the key focus areas of the Summit," Misri said.

The bloc is also expected to take a call on expanding Brics further. At least 23 nations had applied to join the bloc. Foreign ministers had been tasked with developing the Brics partner country model, and a list of prospective countries would be presented in Kazan. Initially, bringing together five of the largest developing countries of the world, Brics now represents half of the global population, 37.5 per cent of global GDP, and 40 per cent of global trade.

The Johannesburg-II Declaration adopted at the last Summit in South Africa accepted that global growth momentum had weakened and the economic prospects had declined due to trade fragmentation, prolonged high inflation, and tighter global financial conditions.

Of the Indians illegally contracted to fight in the Russian Army, 85 have been brought back, while two have lost their lives, Misri said. He said at least 20 Indians are known to be still enrolled in the Russian Army, and the government is in touch with Moscow to bring them back.