A top Russian official has declared plans for a BRICS payment system “not hypothetical,” signaling a shift toward reducing reliance on the dollar through alternative financial mechanisms.
A New Era? Russia Claims Feasibility of BRICS Payment Network
Russian Deputy Foreign Minister Sergey Ryabkov has affirmed that plans to establish a BRICS payment system are tangible and progressing, describing them as “not hypothetical.” In an interview with the Tass Analytical Center on Tuesday, Ryabkov reflected on Russia’s role during its BRICS chairmanship, emphasizing that the initiative is both real and actionable. When asked about the feasibility of such a payment system among BRICS nations, he stated:
Not only it exists. It is not hypothetical.
Discussing Russia’s potential participation in collaboration with countries like Brazil and Iran, Ryabkov confirmed Russia’s willingness to move forward and indicated that other BRICS nations would likely follow suit. “Of course. Moreover, the others would join as well. This plan is now on the table and that will be implemented is not a pattern for dollar substitution in all settlements. It is a pattern for creating an additional circuit for work in conditions when the main and well known to all dollar channel is failing for reasons beyond the control of BRICS,” he explained. This plan, he elaborated, aims to create a parallel mechanism rather than replace the dollar entirely.
The expanded BRICS group, which now includes Brazil, Russia, India, China, South Africa, and six new members—Saudi Arabia, Iran, the UAE, Egypt, Ethiopia, and Argentina—has intensified efforts to reduce reliance on the U.S. dollar for international trade and investments. This move aligns with a broader “de-dollarization” trend, spurred by geopolitical tensions and a desire to insulate economies from dollar volatility. Recent developments include trade settlements in local currencies, the establishment of alternative payment systems, and discussions on creating a BRICS currency to facilitate intra-group transactions. However, these efforts face hurdles such as varying economic structures, differing policy priorities, and the need for a robust mechanism to ensure currency stability and liquidity across the bloc.
Ryabkov also highlighted additional components needed to support the system, including clearing mechanisms, transaction insurance systems, and cargo movement assurances. “We are also working on them – transaction insurance systems, including insurance for the movement of goods and cargoes, which would also not depend on harmful external influences,” he noted.
The deputy minister concluded that these measures collectively signal meaningful progress toward establishing a viable alternative to existing financial structures. He opined:
All together this is the minimum that could allow the ‘BRICS’ to say that things have moved forward and a real alternative has emerged.
