Brics summit: Putin proposes new investment platform for partner nations

"We propose to set up a new investment platform of BRICS," Putin said, addressing the plenary session of BRICS Summit

Russian President Vladimir Putin on Wednesday, proposed to create a new investment platform for BRICS countries, Reuters reported.

"We propose to set up a new investment platform of BRICS," he said, addressing the plenary session of BRICS Summit.

"We need to jointly promote the low-emission model of the economy. New BRICS global investment platform to provide financial resources for all countries of the Global South," the Russian President said as quoted by Reuters.

As of now, BRICS has two financial platforms namely the New Development Bank, headquartered in Shanghai and the Contingent Reserve Arrangement.

The New Development Bank mobilises resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, to supplement existing efforts of multilateral and regional financial institutions for global growth and development.

The Contingency Reserve Arrangement is a short-term liquidity support for the BRICS members through currency swaps to help mitigate the balance of payment crisis situation, in case such a situation arises and thus further strengthens financial stability.

Notably, BRICS member countries have signed MoUs with each other and have agreements in place that strengthen actions towards climate change. These include the BRICS Environmentally Sound Technology (BEST) Platform for sharing information and best practices on environmentally friendly technologies.

The Russian President also highlighted that over 30 countries have expressed the desire to join BRICS, while adding that the group would discuss its expansion at the meeting, but it was important to strike a balance in any expansion.

"It would be wrong to ignore the unprecedented interest of the countries of the Global South and East in strengthening contacts with BRICS," Putin said.

"At the same time, it is necessary to maintain a balance and prevent a decrease in the effectiveness of the BRICS," he said, adding that the grouping would also discuss "acute regional conflicts," the Russian President was cited as saying by Reuters.

BRIC, as a formal grouping, started after the meeting of the Leaders of Russia, India and China in St Petersburg on the margins of the G8 Outreach Summit in 2006.

The grouping was formalised during the first meeting of BRIC Foreign Ministers on the margins of UNGA in New York in 2006. The first BRIC Summit was held in Russia's Yekaterinburg in 2009.