In the first expansion of the BRICS group in over a decade, Saudi Arabia, the United Arab Emirates, Iran, Egypt, Ethiopia, and Argentina have been invited to become members. The announcement was made by South African President Cyril Ramaphosa at the annual summit in Johannesburg. The new membership will take effect from January 1, 2024. Current BRICS members include Brazil, Russia, India, China, and South Africa.
Russian President Vladimir Putin congratulated the new members and emphasized the bloc’s growing global influence. Chinese President Xi Jinping called the expansion historic and reflective of the bloc’s determination to cooperate with developing countries. Indian Prime Minister Narendra Modi welcomed the expansion, stating it would strengthen the bloc.
The inclusion of Saudi Arabia, a major oil exporter, alongside China, the world’s largest oil importer, raises economic and geopolitical implications. Russia and Saudi Arabia, both OPEC+ members, would find themselves in the same economic bloc.
The expansion has prompted discussions about potential de-dollarization and the possibility of a common currency among BRICS countries. This comes at a time of rising tensions between some BRICS members, particularly Russia and China, with Western nations.
Critics have raised questions about the effectiveness of adding more countries to the bloc, given existing challenges in cooperation among the original members. The BRICS group was originally formed by Brazil, Russia, India, China, and South Africa, and it launched the New Development Bank in 2015 to promote infrastructure development in emerging economies.
Curated by GSC Team
