Putin urges BRICS to build payment, reinsurance and grain-trading infrastructure

# What Putin asked BRICS to consider

Russian President Vladimir Putin used the closing session of the 18th BRICS Summit in New Delhi to press several concrete institutional proposals aimed at deepening economic integration inside the grouping. He framed these as practical tools to make commerce, finance and risk management inside BRICS less dependent on external systems and providers.

# The proposals, in plain terms

• BRICS payment, depository and clearing infrastructure: A payments and settlement arrangement where trade between BRICS members can be cleared and settled in local currencies. The idea is positioned as an alternative to global systems such as SWIFT and as part of the move to develop BRICS Pay as an independent digital payment and clearing infrastructure.

• BRICS reinsurance mechanism: A dedicated reinsurance entity that would provide capacity to insurers within BRICS, reducing reliance on major reinsurance markets based in Europe and the United States.

• BRICS Grain Exchange (BGE): A regional futures and grain trading platform proposed earlier and reiterated by Putin as a substitute for offshore platforms like CME. Russia previously claimed the BGE could save BRICS members around $2.5 billion annually.

# Why these measures were pitched

Putin said BRICS trade has already reached $1.2 trillion and argued that members have developed channels for moving goods, services and capital that can operate independently of external market conditions. He presented the proposals as practical steps to protect and expand intra-BRICS commerce under "external pressure" such as sanctions or market access constraints.

He also highlighted broader complementarities among member economies—population growth, stronger domestic markets and existing industrial, technological and transport infrastructure—as the rationale for building more internal platforms for trade, finance and risk sharing.

# India's stance and BRICS Pay

India clarified publicly that there is no proposal for a common BRICS currency. At the same time, member states are advancing BRICS Pay as a separate digital payment and clearing option that would facilitate local-currency settlement across the bloc.

# Bank and finance proposals

Putin called for strengthening and updating the New Development Bank's business model. He noted the bank has financed 123 projects worth nearly $40 billion but said financing needs exceed current capacity. He proposed creating a new investment platform, using modern financial technologies and potentially digital assets, to mobilise long-term capital including private funds for BRICS and for partners across the Global South.

# What this means practically

• Payment and settlement systems in local currencies could lower transaction costs and reduce exposure to third-country controls.

• A dedicated reinsurance vehicle would offer insurers within BRICS alternative capacity, potentially easing insurance supply constraints tied to geopolitical frictions.

• A BRICS grain exchange would centralise regional agricultural trading and hedging, with Russia suggesting measurable cost savings compared with using existing global futures platforms.

# Immediate context

Putin presented these proposals after attending a BRICS Outreach/Plus session, and framed them as actionable initiatives. They echo earlier reporting about moves to set up the BRICS Grain Exchange and broader BRICS efforts to link payment systems, develop local-currency trade and build resilient supply chains.

# Bottom line

The proposals are concrete institutional ideas aimed at shifting more trade, finance and risk-management activity inside BRICS. India's explicit rejection of a common currency narrows the focus to payment rails, clearing infrastructure and specialised vehicles (reinsurance, grain exchange, investment platforms) that could be built without creating a single currency.