The Eurasian Economic Union and the BRICS may organize work on the unification of payment and settlement infrastructures within the framework of cooperation. This was stated by Advisor to the Chairman of the EEC Board Vladimir Kovalyov at the plenary session “New models of cooperation between the BRICS countries and the EAEU as an alternative to old economic paradigms” at the BRICS International Business Forum in Moscow on November 28.
“The global financial system is changing. The significant potential for cooperation between the EAEU and BRICS suggests the possibility of forming a new unit of account on the basis of the basket of currencies of the two associations. The creation of a universal payment system involving the issue of a common payment card (BRICS + EAEC), uniting national systems of China (Union Pay), India (RuPay), Brazil (Elo), EAEC member states (MIR, Belkart, etc.) may become interesting and beneficial,” noted Vladimir Kovalyov.
Trade and economic cooperation between the EAEU and BRICS is actively gaining momentum. Only in the first half of 2022, exports from the EEU states to the BRICS countries increased by half, while the share of the BRICS countries in the total foreign trade turnover of the EEU reached about 30%.
The Eurasian Economic Commission sees a prospect in the creation of independent international institutions, whose activities will extend to the common space of BRICS and the EAEU. As Vladimir Kovalev noted, “It is advisable to combine the potential of macrofinancial development institutions of BRICS and the EAEU, in particular the BRICS New Development Bank, the Asian Infrastructure Investment Bank, the EDB, as well as national development institutions. This will make it possible to achieve a synergistic effect and ensure synchronous investments in sustainable infrastructure, innovative production, and renewable energy sources.
A pragmatic approach is also needed today in order to create a universal rating mechanism in the EAEU and BRICS, whose assessments would not be subject to conjunctural risks and could become fundamental in making investment decisions throughout this global space.
“We can use the experience of already proven platforms, such as the Chinese agencies Dagong and Chengxin Credit. There are positive practices in the EAEU, for example, the Russian Analytical Credit Rating Agency (ACRA), which successfully operates in the markets of the Union. The issue of creating the Eurasian rating agency is being discussed at the Union’s platform,” shared his opinion the Advisor to the Chairman of the Collegium of the Eurasian Economic Commission.
Convergence of the EAEC and BRICS economies is a practical basis for the formation of a Greater Eurasian Partnership as an equal and open format of international cooperation. During the plenary session of the Forum the participants voiced an initiative to prepare a common strategy for the activities of the EAEC and BRICS by involving the business community and the expert community in this work.
Source: EEC website
