BRICS & the multi-polar [final] world order.

[TsarSamuil]

Israel wants free trade zone with Eurasian Union ASAP.

RT.com
28 Oct, 2015 12:21

Tel Aviv intends to clinch the deal on a free trade zone with the Russia-led Eurasian Economic Union (EEU) as soon as possible, says co-chair of the Russian-Israeli Trade Commission Zeev Elkin.

The negotiations between Israel and the EEU are being given the "highest priority," TASS quotes the minister as saying.

"We have asked the Russians to begin negotiations in early 2016 and conduct at least two rounds of talks next year…As a rule, at a normal pace, such an agreement can be signed within two years," said Elkin.

He said the final deal depends on the difficulty of issues faced during negotiations, but said Israel is actively working to kick off talks as soon as possible.

"We believe that it has great potential for the Israeli economy, and for the countries of the [EEU]. I believe there is no reason to delay this," said Elkin.

Israel will be able to increase trade with the five members of the Union by 6-8 percent; Russia will see an increase in investment and technology transfer.

Despite the fact that Israel has traditionally been a close US ally, its relationship with Washington has recently deteriorated, says the president of the Russian Middle East Institute Yevgeny Satanovsky.

“The US betrayed Israel on Iran talks. Barack Obama thinks Benjamin Netanyahu is a hardcore Republican, it is difficult for them to find a common language,” the expert said in an interview with Russian business daily Kommersant.

At the same time, Moscow and Tel Aviv have reached a mutual understanding on a number of key issues, said Satanovsky. "Israel fully cooperates with Russia on Syria. Benjamin Netanyahu may meet with President Vladimir Putin whenever he wants. I would describe their relationship as ideal," he said.

The EEU is a Russia-led trade bloc established in 2015 on the basis of the Customs Union of Russia, Kazakhstan and Belarus. It currently has five members: Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan, while Tajikistan is a prospective member.

The EEU ensures free movement of goods and services, capital and labor, as well as a coordinated, coherent and unified economic policy for its members.
The Union has a free trade agreement with Vietnam and is currently negotiating with Iran.


Russian President Vladimir Putin (L) welcomes Israeli Prime Minister Benjamin Netanyahu © Ivan Sekretarev

[TsarSamuil]

BRICS Bank & AIIB to strengthen global financial system - Putin.

RT.com
17 Nov, 2015 09:50

The BRICS New Development Bank and China’s Asian Infrastructure Investment Bank will contribute to the strengthening and stability of the global financial system, according to Russian President Vladimir Putin.

"Russia is actively participating in the work of the new financial institutions – the BRICS Bank and the Asian Infrastructure Investment Bank. I am sure their activities will help to develop the Asia-Pacific region and will also help to strengthen the global financial system and make it more stable," Putin wrote in an article ahead of the Asia-Pacific Economic Cooperation (APEC) summit in the Philippines.

The President added that Russia is doing its best to establish a proper business environment. Those efforts have already been acknowledged, according to Putin, as over the last four years Russia jumped 69 positions in the World Bank’s “Doing Business” rating, from the 120th place to 51st.

The BRICS New Development Bank (NDB) was established by the five member states – Brazil, Russia, India, China and South Africa – in 2014. Its main goal is to promote sustainable development in BRICS countries. In July the bank opened in Shanghai with startup capital of $50 billion.

The China-led Asian Infrastructure Investment Bank (AIIB) was launched in October 2014 and has 57 countries as its founding members from Asia, Europe, Latin America, Africa and Oceania. The bank will finance infrastructure projects in the Asia-Pacific Region, such as roads, railways, and airports. China has 20.06 percent of the voting share and India 7.5 percent. Russia has the third largest stake with 5.92 percent. The initial capital of the AIIB will be $50 billion and is expected to be increased to $100 billion. The headquarters will be located in Beijing.

[TsarSamuil]

BRICS bank to begin borrowing in yuan.

RT.com
1 Dec, 2015 09:34

The BRICS New Development Bank (NDB) could start operations by borrowing in the Chinese currency, according to the bank’s Vice President Vladimir Kazbekov.

He says the bank will focus on loans in the national currencies of the bank’s potential customers.

“Considering the stability of the Chinese currency and the scale of the Chinese debt market, I think that one of the first steps in providing the New Development Bank with funds may be entering the Chinese market to borrow in yuan," Kazbekov said on Tuesday at the opening of a BRICS media summit in Beijing.

On Monday, the Chinese yuan was included in the IMF Special Drawing Rights (SDR) joining the US dollar, euro, British pound and the Japanese yen.

Kazbekov said the NDB is examining ways of entering the financial markets of other BRICS members, Brazil, Russia, India and South Africa.

"We want to find new flexible instruments of lending, to significantly reduce the time to consider a loan, and try to actively use the model of private-public partnership," he added.

There might be a lack of resources for long-term projects without the active attraction of private capital, according to the NDB Vice President.

NDB was established by the BRICS countries Brazil, Russia, India, China and South Africa in 2014. Its main goal is to promote sustainable development projects within the BRICS complementing the World Bank. In July the bank opened operations in Shanghai with start-up capital of $50 billion.

[TsarSamuil]

Beijing looks to invest in South Africa.

RT.com
3 Dec, 2015 12:21

China and South Africa have inked deals worth $6.5 billion as the two countries aim to boost trade and investment. The agreements were reached during a four-day tour by Chinese President Xi Jinping to Africa.

As part of the 26 signed deals, China would lend $2.5 billion to South Africa's state-owned rail operator.

Another $500 million loan will go to the state power company for nuclear cooperation improvement. The construction of a car manufacturing plant in South Africa is also among the agreements reached.

In exchange for Beijing’s loans, the African countries will provide China with oil and other key commodities.

Chinese Vice Foreign Minister Zhang Ming said that China and African countries “face unprecedented opportunities in terms of boosting mutual development as the two sides are embarking on a new phase of development.”

South Africa’s leader Jacob Zuma reiterated saying relations between the two countries were at their "best ever".

Analysts view Xi Jinping’s visit as an attempt to assure African nations that China's slowing growth won’t reduce its investment in the continent. On Friday he will co-chair a China-Africa cooperation summit in Johannesburg during which more multibillion-dollar loans are expected to be granted to African countries.

[TsarSamuil]

‘Financial world split: Dollar group vs. BRICS group’

RT.com
9 Dec, 2015 13:41

By imposing new lending rules within the IMF, the US has declared financial war against countries that are not using American dollars in foreign trade and whose currencies are not based on the US dollar, Wall Street analyst Michael Hudson told RT.

The International Monetary Fund [IMF] has decided to change its rules in order to support countries, which are unable to repay their lenders. The new policy will help Ukraine if it fails to repay $3 billion to Russia. Russian officials have condemned the decision as hasty and biased.

RT: What is it about Ukraine that's making the IMF so willing to change its guidelines?

Michael Hudson: It has really become a part of the Cold War. For many years the World Bank has been a part of the US Defense Department - Robert McNamara, Bob Zoellick, Paul Wolfowitz... But essentially Ukraine has now radically changed almost all of its rules. …

The IMF staff said: “Ukraine can’t pay back the money.” There is no visible way in which it can, because it declared war on its export sector. So Ukraine then was under pressure to give in to the US as if it has become like the World Bank, an arm of the Defense Department, that says: “Countries do have to repay loans to foreign governments accept for Russia, and by implication, accept for China, accept for the BRICS.”

So the IMF now says: “We are now only going to follow our rules and act on behalf of the dollar area. Countries that owe dollar debts to the US and its satellite currencies like the euro will have to pay. But if your owe debts to Russia, China, Iran, or any country not in the orbit, it is ok not to pay; we will lend you the money, the US will lend you the money, the IMF will lend you the money. You can now split the world into two currency groups: the dollar group and the BRICS group.” So this essentially is a declaration of financial war by the US against all countries that are not using the US dollar in foreign trade and are not basing their own domestic currency on the US dollar as the euro is doing. This is a radical change that is the most important change in half a century.

James Petras, from Binghamton University shared his opinion with RT:"I think it is a case of mutual manipulation. The US is interested in incorporating Ukraine into the NATO alliance and using it as a pressure point against Russia. On the other hand [Petro] Poroshenko’s economy is in dire straits; it is in a negative spin; it has few resources; it lacks popular support. He is still engaged in the warfare with the Eastern regions. He has alliances among the most extreme right-wing groups in Europe…His crony capitalism has alienated middle class Ukrainians. I think there is a question here of a government with the few resources, and a superpower looking to manipulate the regime to serve its imperial interest."

RT: The new rules are supposed to also apply to all other countries that are in debt. How much of a gamble is this for the IMF?

MH: It is a gamble that it will not lose Russia, China, the BRICS countries and other countries that they want to simply withdraw. Through the last 50 years the IMF has had bailout program saying: “We will lend a little bit of money and other governments will come in and they’ll join us to bail out programs. And the enforcement lever that we have to make sure that the governments will be repaid - if a country doesn’t repay the IMF, then we won’t make any further loans to it.”

That means that none of the other governments will join either. Well, now the IMF is saying: “If the US has a political or military fight with a country, or if there is a country that is not a part of the US dollar area, all that is changed." And it will no longer act as a collection agent for governments that owe countries except for the US, European and Japanese currency. That is a declaration of financial war...

RT: Ukraine isn't likely to repay its three billion dollar debt to Russia this year. Its international bailout is more than ten times bigger. How is it going to be able to pay any of it?

MH: They’ve already said they don’t intend to repay a single penny. They say: “We don’t have to pay Russia, because America is backing us, and America is going to support us…”

Last May when the IMF made the last loan to Ukraine, Lagarde said: “I hope Ukraine uses that to build up its industry and doesn’t go to war.” The next day President [Petro] Poroshenko said: “Now that we have the loan... we’re going to spend all the money we have militarily supporting the oligarchs in the East that are fighting against the Russian speakers.” So basically the IMF loan is to finance the civil war, ... the ethnic war of Ukrainian speakers against the Russian speakers, and the West against the East.

[TsarSamuil]

India’s Modi comes to Russia - with love.

Dr. Sreeram Chaulia, RT
23 Dec, 2015 10:12

Indian Prime Minister Narendra Modi’s first state visit to Russia on December 23-24 promises to unlock new vistas of cooperation for energizing an age-old strategic partnership at a time when both nations need each other more than ever.

Although annual Russia-India summits were institutionalized long ago and this is the sixteenth edition, the assertive push being given by Modi and President Vladimir Putin to re-script ties by breaking fresh ground makes this week’s dialogue special.

Redressing imbalances and shortcomings

The main lacuna currently holding back the full potential of the Russia-India relationship is an underwhelming performance in the economic sphere, which has lagged despite political will and pledges in both Moscow and New Delhi to ramp them up.

With bilateral trade stuck at a meager $10 billion per annum and two-way cumulative foreign investment flows lingering at just $12 billion, neither side can afford to allow the business-to-business links to drift to such a point that there is no longer a deeper beneficial exchange between two societies that had historically been closely knit.

In the contemporary period of economic interdependence and maximization of profit-making via diplomacy, the Russia-India affair is top-heavy with robust military-to-military deals among state elites but shaky at the bottom where civilian commerce is not booming.

Conscious of the need to broad-base the glue that holds these two all-weather friends together, Modi has mobilized a galaxy of Indian industry stalwarts to accompany him and attend the India-Russia CEO Summit. The high-profile makeup of the Indian business delegation in Moscow sends a message that Modi recognizes the true economic worth of Russia despite the fact that it is passing through a difficult downturn amidst plunging oil and gas prices. It should also help clear mutual misconceptions about inhospitable conditions for doing business in both countries.

Wooing Russian investors and entrepreneurs

For all the portrayals of Russia as struggling under the weight of Western sanctions, Modi senses a major opening in attracting Russian investors to India’s National Infrastructure Fund. Russia is flush with big-pocketed billionaires who are not facing a welcoming environment in their traditional European financial havens due to Putin’s resistance to Western geopolitical agendas.

With Putin’s facilitation, Modi would like to tap into these vast reservoirs of financing for the ‘Make in India’ campaign— an ambitious plan to build a strong indigenous manufacturing base which can generate employment and export revenues.

Even though Western stereotyping has painted Russia as technologically backward, it boasts of advanced aerospace, nanotechnology, metallurgy, optics and software sectors that Modi is aiming to connect with India’s economic growth story by setting up a $3 billion joint innovation fund.

But the enterprising genius of Russian youth, who have taken to start-ups in information technology, is close to Modi’s own ‘Startup India’ blueprint, and therefore he would want to forge conversations between the two for a nice opportunity at cross-learning.

Western sanctions: India’s opening

Owing to the retaliatory trade embargoes between the European Union and Russia, India is poised to step in and meet Russia’s demand for dairy products, seafood etc. The Russian Deputy Prime Minister Dmitry Rogozin sees Indian manufacturers as “a big partner that can fill the vacuum” caused by Russia’s standoff with the West and its allies like Turkey. Modi is alert to this dynamic and is pressing on all cylinders for a commercial liftoff that has sadly evaded Russia and India.

This process will also be boosted by China’s own economic slowdown, which signals that Russia cannot place all its eggs in Beijing’s basket to lift its chestnuts out of the fire. As a faster growing country than China, which does not pose any strategic threat whatsoever to Russia, India could be Russia’s white knight.

The reverse also holds true in the context of the quest for civilian nuclear energy in India, which rests very much on upgraded Russian assistance. Russia has faithfully stood by India no matter how hesitant and slow Western atomic energy companies have become about civilian nuclear commerce.

During the latest summit, Modi and Putin will be signing agreements for two new Russian-backed nuclear plants in the southern Indian state of Andhra Pradesh in accord with the localization norms of the ‘Make in India’ program.

Next generation defense cooperation



Modi is visiting Moscow after wrapping up a series of big-ticket agreements for new defense sector collaboration, including Russia’s state-of-the-art S-400 anti-aircraft missile system worth $4.5 billion.

Military purchases have been the mainstays of the bilateral relationship, but India has diversified its suppliers and made its market more competitive for foreign bidders. To regain its share of the Indian defense pie, Russia has gone farthest in co-production and transfer of know-how.

In the words of the Russian Ambassador to India, Alexander Kadakin, “no country in the world shares with India the most secret and confidential things that it possesses.” Hence the noteworthy decision by Russia to jointly manufacture 200 light helicopters with local Indian partners for deployment with the Indian military, and eventually the Russian armed forces and possibly other buyers.

The model of the world’s fastest Brahmos supersonic cruise missile— offspring of the marriage of Indian and Russian defense companies— which is being sought by Southeast Asian and Latin American countries, reveals that the Russia-India bilateral synergy can deliver world-class results.

If the two countries also move forward in implementing a joint venture to build a fifth generation stealth fighter aircraft, it would set benchmarks and reify Modi’s vision of the defense industry attaining a central place in the ‘Make in India’ initiative.

The remark by Modi’s industrialization czar, Amitabh Kant, that “whatever we do with Russia will have a 'Make-in-India' component,” and Russia’s readiness to play ball for both pecuniary and strategic reasons, mean that the future of the Russia-India partnership is bright.

Reviving people-to-people ties

When Modi met Putin in Ufa earlier in 2015, he expressed admiration and pride at the manner in which the Russian people took to celebrating his trademark International Yoga Day. Modi is keen to see many more centers of Yoga emerge in Russia and help the Russian people rediscover India’s ancient wisdom. His government is also enthused by the scholarship of Russian Indologists, whose translations of Indian epics into Russian enhances India’s soft power.

What has been missing, though, is more intense cultural diplomacy by Russia in Indian society. The exposure of Indian people to Russian movies, art, music, ballet and literature has declined since the heydays of the Soviet Union. It must be revived to rekindle the soft spot that older Indians always had for all things Russian, and which has faded now with the younger generation.

Affirming Putin’s value

For a leader pigeonholed as ‘pro-American’ by those who have misread his core ‘India first’ nationalism, Modi appreciates Putin as an indispensable problem-solver for countering extremism and working to end armed conflicts in Syria and Ukraine. He sees no reason to buy into the ‘ostracize Putin’ motto of the West and is preparing to sign an extensive counter-terrorism pact in Moscow, living up to Rogozin’s billing of our two countries as the “vanguard of the struggle” against Islamist fundamentalism.

To India, Putin is a trustworthy and influential figure who holds the cards to a more stable and peaceful world. Modi’s praise of Putin’s “substantial views and a very clear and frank position as a permanent member of the UN Security Council” leaves no ambiguity that wherever Indian and Russian interests converge, they will work in tandem in pursuit of the shared vision of a multipolar international order.

Putin’s proactive role as a kingmaker and deal-broker in global crises has already neutralized Western designs of isolating Russia. In Moscow this week, Modi is reconfirming that Russia is indeed “our country’s greatest friend” and reminding the international community that Putin is too important to be spurned.

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‘Where does India fit in the new Russia-China partnership?’

RT.com
24 Dec, 2015 12:27

It is important for India to remain part of the conversation with Russia and China despite disagreements between Beijing and New Delhi over Afghanistan and Pakistan, Indian journalist and commentator Vijay Prashad told RT.

Indian Prime Minister Narendra Modi arrived to Moscow on Wednesday for a two-day visit, just one week after India’s Defense Acquisition Council (DAC) approved the purchase of five S-400 air defense systems from Russia.

RT: Why is Modi's visit so significant at this particular time?

Vijay Prashad: Mr. Modi has been traveling to most of the world’s capitals. So it was about time he came to Moscow. The most important aspect of this visit is that there needs to be a readjustment between India and Russia. This has been a long time coming, particularly given the fact that Russia and China have been creating a new kind of partnership. I think there needs to be a discussion of where India fits in to the new Russia- China partnership.

RT: It's believed the two countries will sign a massive weapon deal. How significant will this be for both Moscow and India's military goals?

VP: India used to buy most of its armaments from Russia, then the Soviet Union, until the 1990’s. From the 1990’s onward, India has diversified its purchases from the US and to a large extent from countries like Israel. It seems now that Russian arms have come back on line. India is going to rebalance some of its arms purchases. It is important to bear in mind: India is the leading importer of weapons in the world.

But actually there is something else on the horizon here, not merely arms purchases. India is now eager to create a domestic arms industry, and it seems that the Russian government is quite willing to transfer some technology towards this end. So not only will India likely begin to buy greater volumes of arms from Russia – there is talk of several billions of dollars of arms purchases in this two-day trip itself - but also India is going to try to ink some deals so that it can develop its own arms industry.

RT: How important do you think relations with Russia are for India?

VP: India has over the last 20 years leaned quite heavily towards the US. And in the last 10 years or so with the emergence of the BRICS bloc, this has balanced out India’s allegiances or alliances with the US. So the relationship with Russia is very important because it brings India back somehow not so much as a subordinate ally of the US, but it might allow India to develop once again a rational pragmatic foreign policy based on a more complicated understanding of the world. When the Indian government saw the geopolitics as largely framed by the US that had a tendency to move India into the Western camp. Now with the emergence of what we might consider multi-polarity, the new relationship with Russia will allow India at least to balance its place in the world order.

RT: China is also a diplomatic rival of India. How might Beijing view a potential deal between Russian and India?

VP: This is a very complicated situation. India and China have a great deal of disagreement about the role, for instance, of the Taliban in Afghanistan, where because of China’s entanglement with Pakistan, it has a slightly different view than the Indian government. This is also of course the case between, say, the role of the pipelines that are being drawn across Asia: what is the relationship between China and Pakistan; where will India fit into this?

...It is important that India remains part of the conversation. It is important that countries such as Russia and China understand that the enmity between India and Pakistan should not be used as a tool against these countries. But they should also use their leverage as a way to bring India and Pakistan to the same table.

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Russia, India Sign Agreements Simplifying Mutual Travel.

WORLD 19:04 24.12.2015

Russia and India have signed a package of deals after talks between President Vladimir Putin and Prime Minister Narendra Modi on Thursday, including on simplifying travel for certain categories of citizens.

MOSCOW (Sputnik) – Among the signed agreements were a protocol amending the December 21, 2010, Russian-Indian agreement simplifying business and tourist visa approvals, and another protocol amending the December 3, 2004, mutual travel agreement for diplomatic and official passport holders.

Modi arrived in Moscow for a two-day visit to hold talks with Putin on a range of bilateral issues, including transport, trade, energy, and the economy.

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Putin Reaffirms Close Military-Technical Cooperation With India.

WORLD 19:57 24.12.2015

Vladimir Putin said that Russia and India are maintaining close military-technical cooperation and have good prospects in joint development of a multi-role fighter and a multi-purpose transport plane.

MOSCOW (Sputnik) – Russia and India are maintaining close military-technical cooperation and have good prospects in joint development of a multi-role fighter and a multi-purpose transport plane, President Vladimir Putin said Thursday.

"Our countries traditionally maintain close cooperation in the military-technical sphere. It involves not only deliveries of ready-to-use products, but also a close technological cooperation," Putin said at a joint news conference with Indian Prime Minister Narendra Modi following talks in Moscow.

"We also note good prospects of talks on joint development of a multi-role fighter and a multi-purpose transport plane," Putin added.

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Russia, India Agree to Boost Cooperation in Space Exploration.

WORLD 20:15 24.12.2015

Russia and India have affirmed common dedication to further collaborate in developing space exploration, rocket manufacture and engine manufacture, according to a joint statement published Thursday following talks between the two countries' leaders.

MOSCOW (Sputnik) – Earlier in the day, Indian Prime Minister Narendra Modi met with Russian President Vladimir Putin during his visit to Moscow.

The sides positively assessed the June 2015 Memorandum of Understanding (MoU) signed by the Indian Space Research Organisation (ISRO) and Russian Federal Space Agency (Roscosmos).

The memorandum deals with developing cooperation in areas of mutual interest, including satellite navigation, human spaceflight program technologies and launch vehicle development. The memorandum is notable for being signed on the 40th anniversary of the launch of the first Indian satellite by a Soviet rocket, according to the statement.

Modi arrived in Moscow for a two-day annual summit on Wednesday to hold talks with Putin on a range of bilateral issues, including transport, trade, energy, and the economy.

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Russia to ship 10mn tons of oil annually to India in next 10 years – Putin.

RT.com
24 Dec, 2015 20:54

Russia will supply India with 10 million tons of oil annually in the next 10 years, President Vladimir Putin said after meeting Indian PM Narendra Modi in Moscow. The two also agreed upon several major deals in defense, trade and nuclear energy.

“In the framework of the agreement between Rosneft and Esser group, large-scale supplies of oil and petroleum products – 10 million tons of oil annually in the next 10 years – are planned to be delivered to Indian refineries,” said Putin Thursday during a joint statement with Modi.

The Indian prime minister is on a two-day visit to Moscow as part of the 16th Annual Bilateral Summit. The summit started on Thursday with a private dinner hosted by Putin in the Kremlin following which Russia and India inked 15 agreements.

Moscow reiterated its commitment to cooperate in the nuclear sphere as Putin confirmed Russia’s plans to build at least six new nuclear power units in India in the next 20 years. In April, 2014 Russia and India agreed to begin phase two of the Kudankulam plant, which is to be launched in the coming weeks. According to Putin and Modi, the construction of Blocks 3 and 4 is to be launched shortly, while negotiations are still held on the construction of Blocks 5 and 6.

India and Russia reaffirmed that military-technical cooperation remains one of the key objectives of their partnership.

“It's not just about the final product, but about close technological cooperation,” Putin explained.

He elaborated that the two countries have been successfully cooperating in the production of BrahMos short-range supersonic missiles and that they planned to jointly develop a new type of jet fighter and transport aircraft.

Russia and India have also affirmed their commitment to further collaborate in developing space exploration, rocket manufacture and engine manufacture.

Modi and Putin inked documents simplifying the approval of business and tourist visas, while the PM urged Russian businesses to more actively invest in India.

"Russia is our most loyal partner, particularly in the fields of defense, security, that's why I've come [here] to welcome our partner to participate in our country's economic progress," Modi said. "Russia is holding a leading position in many spheres such as space, information technologies and heavy industry."

On Wednesday, Modi announced a large-scale development program for the country’s armed forces, which could be worth $150 billion. Earlier, India’s Deputy Foreign Affairs Minister Subrahmanyam Jaishankar promised to increase mutual investment five-fold over the next decade.

“Mutual investments currently average around $11 billion and we want to increase them to $30-50 billion by 2025,”Jaishankar told reporters on Tuesday. He called it a "very big priority" for both parties.

In joint statement on Thursday the Russian and Indian leaders also condemned terrorism saying that the fight against it is only possible if the entire global community joins efforts dropping “selectiveness and double standards.”

"It is important Russia and India make similar approaches to key international problems. Our countries are for a political settlement of the conflict in Syria and promotion of national reconciliation in Afghanistan," Putin said.

“Together with President Putin we have a great level of mutual understanding of global issues,” said Modi.


December 24, 2015. Russian President Vladimir Putin, left, and Indian Prime Minister Narendra Modi meet in the Kremlin. © Sergey Guneev / Sputnik

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Putin, Modi Highly Estimate Results of Trade, Investment Cooperation.

POLITICS 17:14 26.12.2015

A mutual intention to further promote relations of especially privileged strategic partnership between India and Russia was confirmed on the meeting of Russian President Vladimir Putin and Indian Prime Minister Narendra Modi, according to the statement of the Kremlin press service.

MOSCOW (Sputnik) — Russian President Vladimir Putin and Indian Prime Minister Narendra Modi praised the agreements on trade and investment reached by the countries and confirmed disposition for further development of bilateral relations during a phone call, the Kremlin press service said on Saturday.

Modi visited Moscow on December 23-24 and held talks with Putin.

"A high appraisal was given to the achieved results, to the agreements in trade and economic, investment, scientific, technological and humanitarian spheres. A mutual intention to further promote relations of especially privileged strategic partnership between India and Russia was confirmed," a statement reads.

The statement added that Modi thanked Putin for the hospitality extended during the official visit of the Indian prime minister to Moscow.

[TsarSamuil]

SCO to Consider Iran’s Membership Bid After Lifting of UN Sanctions.

POLITICS 03:00 29.12.2015

The Shanghai Cooperation Organization will consider Iran’s application for the full-fledged membership immediately after the UN sanctions are lifted, SCO Secretary General Dmitry Mezentsev said Monday.

MOSCOW (Sputnik) – In July, Iran signed a historic deal with the P5+1 group of international mediators, including Russia, the United States, China, the United Kingdom, France and Germany, to ensure the peaceful nature of Tehran's nuclear program in exchange for the easing of sanctions.

"The conditions under which the country under the UN Security Council sanctions cannot obtain the status of a full member have been prescribed at the first stage of the SCO formation. The organization wishes success to Iran in the completion of work on Iran's nuclear program to implement as expeditiously as possible the necessary legal procedures for the sanctions’ lifting. I believe that after this, the organization will immediately return to Iran's application for a full member status," Mezentsev told the Russian Izvestia newspaper.

The SCO head noted that cooperation with Tehran, especially in the last two or three years, and the interest exhibited by the Iranian side created "the basis of a new quality and depth of this country's cooperation with the association."

Moreover, in accordance with the decision of the SCO heads of state adopted during the Russian chairmanship, India and Pakistan will soon become the SCO member states, Mezentsev stressed.

The SCO is a political, economic and military alliance comprising Russia, China, Kazakhstan, Tajikistan, Uzbekistan and Kyrgyzstan. Pakistan and India's applications to join the SCO were accepted in July but they will only officially accede to the organization following the completion of certain procedures.

[TsarSamuil]

Foreign Policy Diary – 2015, Year of Crisis Escalation. What to expect in 2016?

SOUTH FRONT
Jan 4, 2016

[TsarSamuil]

Top Russian law enforcer proposes int’l coalition to fight ‘US dictatorship’ and currency dominance.

RT.com
12 Feb, 2016 15:29

The head of Russia’s Investigative Committee, Aleksandr Bastrykin, has called for the creation of an international coalition of states to fight the “dictatorship” imposed by the US on the rest of the world, and to reject the use the US dollar as a reserve currency.

Speaking at a roundtable in Moscow, Bastrykin said that the world urgently needed a new system of checks and balances that would allow equal representation of all nations on the international political arena.

He said an alliance of countries was needed which could act in concert as “a feasible pole to counter the dictatorship imposed by the Americans together with their Western allies,” according to the minutes of the roundtable published on the Investigative Committee’s website.

Bastrykin added that America’s current geopolitical dominance is based on its financial might, which in turn can be explained by “the uncontrolled and non-guaranteed” emission of dollars and the “all-enveloping” expansion of the currency. As that’s the case, Bastrykin believes the future coalition of nations should, as a primary measure, ensure the gradual removal of US dollars from their foreign currency reserves, followed by a total refusal to use the dollar as a reserve currency.

“It is against common logic to financially support the country that is using these same resources against our interests,” he noted.

The official told the audience that in his view the United States and its allies were waging a “hybrid war” against Russia which included price dumping on energy markets together with “currency wars” in the form of the uncontrolled expansion of the dollar.
The alternative proposed by Bastrykin includes the integration of the financial systems of various member-nations of the future coalition, including international centers for the accumulation of investment resources and systems allowing cross-border payments in national currencies.

He noted that several international organizations and groups – such as the Shanghai Cooperation Organization, the Eurasian Economic Community, the BRICS groups and the Collective Security Treaty Organization – already contained the basic elements of the future alliance.

This is not the first time the head of the Investigative Committee has advocated greater independence and a more prominent international role for his country. In 2015 he proposed that Russia should legally enshrine the primacy of national law over international treaties. He also blamed Boris Yeltsin’s US advisers for including the principle of the superiority of international law over domestic legal procedures in Russian legislation. Bastrykin suggested the steps taken during Yeltsin’s time could be construed as legislative sabotage against Russia.

“In this difficult period Russian society is consolidated like never before and most importantly society now understands that the time for constitutional reform is ripe. This is why I believe that gradually, step by step, these ideas will be implemented into life in the interests of our sovereignty and prosperity,” the official stated in an extensive interview with the Rossiiskaya Gazeta daily.

[TsarSamuil]

No competition between BRICS bank and AIIB – Russian deputy foreign minister.

RT.com
15 Feb, 2016 12:31

The BRICS New Development Bank (NDB) and China’s Asian Infrastructure Investment Bank (AIIB) will complement one another by tackling more infrastructure projects, according to Russian Deputy Foreign Minister Sergey Ryabkov.

"Considering the fact that member-states of NDB and AIIB are not the same, I think there is enough room for everyone due to the scale of issues to be solved. There is no competition… on the contrary, there is much potential to meet more infrastructural needs" Ryabkov told Russia 24 TV Channel on Monday.

According to Ryabkov the two financial institutions will coordinate their work.

"I think together with our Chinese colleagues and other participants of the NDB we’ll try to rationally use resources and avoid any duplication," said Ryabkov, adding that BRICS countries are currently developing a number of new economic projects.

In a November article on the Kremlin website, Russian President Vladimir Putin wrote that the BRICS New Development Bank and China’s Asian Infrastructure Investment Bank will contribute to the strengthening and stability of the global financial system.

Putin added that Russia is doing its best to establish a healthy business environment.

The BRICS New Development Bank was established by the five members (Brazil, Russia, India, China and South Africa) in 2014 with a goal to promote sustainable development in emerging economies. Last July the bank opened in Shanghai with startup capital of $50 billion.

The China-led Asian Infrastructure Investment Bank was launched in October 2014 and has 57 countries as its founding members from Asia, Europe, Latin America, Africa and Oceania. The bank will finance infrastructure projects in the Asia-Pacific Region, such as roads, railways, and airports. The initial capital of the AIIB will be $50 billion and is expected to be increased to $100 billion. The headquarters will be located in Beijing.

[TsarSamuil]

Moscow and New Delhi transitioning to trade in national currencies - Indian ambassador.

RT.com
24 Feb, 2016 14:31

India and Russia are developing a road map for mutual settlements in national currencies which could open prospects for both countries, India’s Ambassador to Russia Pankaj Saran told RIA Novosti on Wednesday.

"Transition to mutual settlements in national currencies of the BRICS looks promising. Russian and Indian companies are interested in using national currencies in trade settlements,” he said, adding that there is already a mechanism in place for them to use.

According to the ambassador, New Delhi and Moscow aim expanding economic and trade cooperation. They have already chosen priority sectors such as agriculture, pharmaceuticals, jewelry, technical equipment and machinery, oil and gas, and textiles.

During Prime Minister Narendra Modi’s visit to Moscow in December, the two countries set a goal of tripling trade to $30 billion over the next ten years and significantly boost mutual investment.

They also signed a number of multi-billion dollar defense and nuclear energy deals. India has approved the purchase of five S-400 air defense systems from Russia which is part of the biggest arms deal between the two countries in a decade.

Moscow said it will supply India with 10 million tons of oil annually in the next 10 years and build at least 12 new nuclear reactors by 2035.

[TsarSamuil]

Shift to multipolar world: Lavrov says Russia working to adjust foreign policy to new reality.

RT.com
10 Apr, 2016 04:05

Moscow is working out a new concept for Russian foreign policy that will reflect the current transition to a multipolar world, Russian Foreign Minister Sergey Lavrov said, adding that this global trend presents new challenges for all global powers.

“The international situation remains mosaic and controversial. Along with this, a common tendency could be observed,” Lavrov said during a meeting of the Council on Foreign and Defense Policies on Saturday.

According to the minister, we are moving from a world with a single center of power to one having a “polycentric international architecture.”

“We are trying to reflect this tendency in our fundamental doctrinal documents, namely Russia’s national security strategy and the concept of its foreign policy,” he said.

The work on the amended foreign policy concept was launched at the request of Russia’s president, Vladimir Putin.

“A transition to polycentric architecture should be ideally based on the interaction of leading centers of power in the interest of finding joint solutions to global problems,” Lavrov explained.

However, he stressed that Moscow is under no illusions that the shift to a multipolar world will be easy or fast.

“This vision is shared by lots of nations, although like at all previous stages of history, there is nothing automatic about international affairs. There are no guarantees that the positive vector will prevail,” the FM said.

Even with universal international support, switching from a world with a single center to a multipolar one will be a task of “unprecedented difficulty,” requiring “a fundamentally new line of responsibility, wisdom and political will” from all players, he said.

“But under the conditions when the philosophy of equal partnership in the interests of ensuring effective global management is faced by resistance from our Western partners, the obstacles will likely multiply,” Lavrov concluded.

The foreign policy concept is a systemic description of the Russian government’s basic principles, priorities, goals, and objectives.

The document’s latest version was approved by Vladimir Putin in February of 2013, according to the Foreign Ministry’s website.

[TsarSamuil]

BRICS join forces on IMF quota formula reform.

RT.com
15 Apr, 2016 09:40

Brazil, Russia, India, China and South Africa have agreed to take a unified stance on the International Monetary Fund (IMF) quota system revisions.

"We need to take a united position on the quota reviews. Such reviews should in the first place be based on GDP figures, calculated by purchasing power parity (PPP)... Everyone has agreed to this,” said Russian Finance Minister Anton Siluanov on Thursday after a meeting with BRICS finance ministers.

The current quota formula is a weighted average of GDP (weight of 50 percent), openness (30 percent), economic variability (15 percent), and international reserves (5 percent). The GDP is measured through a blend of GDP—based on market exchange rates (weight of 60 percent)—and on PPP exchange rates (40 percent).

According to the Russian Finance Minister, GDP is one of the key indicators, and its greater weight in the formula will take into account the interests of developing countries, which are now under-represented in the IMF, as their economies are developing dynamically.

The reform of IMF was adopted back in 2010, but was delayed until December 2015 due to the position of the US Congress, when it ratified the so-called 14th General Quota Review.

Under the new rules, China’s quota has reached 6.4 percent; Russia and India now have 2.7 percent each with Brazil and South Africa having 2.3 and 0.6 percent, respectively. This gives a total of 14.7 percent against 11.5 percent before. The US is the biggest member of the IMF and is the only one to have a veto, as 15 percent is a blocking share.

Now, the developing economies are looking to alter the formula of the quota. Some of them doubt that such indicators as openness and economic variability should play such a big role in the formula.

[TsarSamuil]

BRICS bank approves first loans, $811mn investment in renewable energy projects.

RT.com
16 Apr, 2016 05:12

The BRICS New Development Bank (NDB) has approved its first package of loans worth some $811 million. The four projects in Brazil, China, South Africa and India are all in the renewal energy development sphere.

The decision to approve the first loans, which are to be handed out in tranches, was approved by the NDB at the board of governors on the sidelines of the International Monetary Fund (IMF) and the World Bank spring meetings in Washington DC, RIA reported.

The NDB decided to provide $300 million to Brazil, $81 million to China, $250 million to India and $180 million to South Africa. The bank estimates that the renewable energy field projects with a combined capacity of 2.37MW together can help reduce the amount of harmful emissions by 4 million tons annually.

“There are many more new projects in the pipeline including projects from Russia. They are at various stages of consideration or appraisal,” the NDB spokesperson said.

The ministers also discussed creating a credit rating agency of their own to tackle the western dominance in this sphere.

“Deliberations were held on efficacy of establishment of New Development Bank Institute and BRICS rating agency,” an Indian media release said. “It was decided that a technical working group would examine the issues in detail.”

The New Development Bank created by Brazil, Russia, India, China and South Africa started its operations in July, 2015, with initial authorized capital of $100 billion. The goals of the bank, headquartered in Shanghai, is to fund infrastructure projects in emerging economies for sustainable development.

[TsarSamuil]

European Investment Bank seeks cooperation with BRICS bank.

RT.com
30 May, 2016 15:07

The European Investment Bank (EIB) is ready to sign a cooperation agreement with the BRICS’ New Development Bank, EIB President Werner Hoyer told RIA Novosti.

On Monday, EIB and the Asian Infrastructure Investment Bank (AIIB) agreed to broaden cooperation to support investment in “strategically important projects.”

“We hope to reach such an agreement with NDB [New Development Bank] soon… We are always open for that,” said Hoyer.

Speaking at a news conference at the EU Embassy in China, he also expressed hopes for productive cooperation between AIIB and the BRICS bank, along the same lines as “the European Investment Bank had with the World Bank on some concrete projects.”

Hoyer said there is no rivalry among the AIIB, NDB, EIB and the World Bank, as they are complimentary. “We need each other because investment projects, particularly those regarding construction of infrastructure objects are so huge that no one of us could deal with it alone. That’s why we should work with each other, and we do it very well,” the official said.

The EIB is the long-term lending institution of the European Union owned by its 28 member states. It provides low-interest loans for projects aimed at improving infrastructure, energy supply, and environmental protection in Europe and developing countries.

The New Development Bank created by Brazil, Russia, India, China and South Africa started in July 2015 with initial authorized capital of $100 billion. The goal of the bank, headquartered in Shanghai, is to fund infrastructure projects in emerging economies for sustainable development.

Last month, the BRICS bank approved its first package of loans. The $811 million investment will be directed at renewable energy projects in Brazil, China, South Africa and India. The bank estimates the renewable energy field projects with a combined capacity of 2.37MW can help reduce harmful emissions by four million tons annually.