BRICS Summit: Putin lashes West for 'illegitimate' sanctions

Delivering a prerecorded message, Putin expressed his frustration at what he believes to be illegitimate sanctions and the illegal freezing of Russian assets. 

The highly-anticipated meeting of leaders from Brazil, Russia, India, China and South Africa officially kicked off on Tuesday in Sandton.

The meeting started with closed sessions were leaders discussed issues of mutual bilateral relations, and possible expansions on trade and investment partnerships.

Putin, who couldn't attend the summit physically due to an International Criminal Court arrest warrant against him, still managed to create the biggest stir of day one. 

Putin told delegates the West is guilty of violating the rules of free trade and global economics.

“The illegitimate sanctions practice, the illegal freezing of the assets of sovereign states, and, in fact, the violation of all the basic norms and rules of free trade and economic life, which not so long ago seemed unshakable, also have a serious negative impact on the international economic situation," the Russian president said. 

"A direct consequence of this was a shortage of resources, increased inequality, rising unemployment, and exacerbation of other chronic problems of the world economy. Prices for food, basic agricultural commodities and crops are skyrocketing, hurting the most vulnerable poor countries first," said Putin.

Putin also lauded the role of BRICS's New Development Bank - which he said is an alternative to the existing Western development institutions.

“By the way, during the current summit we will discuss in detail the whole range of issues related to the transition to national currencies in all areas of economic cooperation of the five. Of course, a big role in such efforts belongs to the BRICS New Development Bank, which has already confidently declared itself as an alternative to the existing Western development institutions.

"It is logical that one of the priorities of the interaction of the 'five' as a whole has become the strengthening of interconnectedness, the creation of new sustainable transport routes. Of particular importance in this context is the initiative of the BRICS Business Council to develop modern intermodal logistics solutions and develop rail transport corridors," said Putin.

At the same time, Standard Bank CEO Sim Tshabalala told the forum that the BRICS Business Council discussed the possibility of a BRICS currency but no consensus was reached.

President Cyril Ramaphosa supported Putin's sentiment on the New Development Bank - saying it has demonstrated an ability to mobilise resources.

“BRICS economies have emerged as powerful engines of global growth.

"Yet the rapid economic, technological and social changes underway create new risks for employment, equality and poverty in many BRICS countries.

"We therefore call on the business community to join hands with us to identify solutions to these and other challenges affecting our respective economies.

"From a South African perspective, there is massive untapped potential for investment in our country and on the African continent," said Ramaphosa.

Ramaphosa added that this year's summit is set to be the most significant in the bloc's history.

“The new wave of protectionism and the subsequent impact of unilateral measures that are incompatible with WTO rules undermine global economic growth and development.

"We therefore need to reaffirm our position that economic growth must be underpinned by transparency and inclusiveness. It must be compatible with a multilateral trading system that supports a developmental agenda.

"We require a fundamental reform of the global financial institutions so that they can be more agile and responsive to the challenges facing developing economies," he added. 

The summit is set to continue on Wednesday and Thursday with more discussions on the membership expansion.

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