Putin-Hosted BRICS Summit Begins: Implications For Newly Joined Iran Amid Rising Tensions
Iran, a country that has been reeling under sanctions imposed by the US and several western countries, has found a way out, by joining the BRICS (Brazil, Russia, India, China, and South Africa) along with several other newcomers into the bloc. The bloc, according to the analysts, including the emerging powers, was created to counter the US-led economic dominance in the world.
As the 16th BRICS summit is all set to commence today, October 22, in Russia, the Iran ambassador has confirmed the participation of the country’s president, Masoud Pezeshkian. The summit is taking place under Russia’s chairmanship from October 22 to 24. Notably, the expanded BRICS summit, which newly accommodated Egypt, Ethiopia, Iran, Saudi Arabia, United Arab Emirates as a formidable non-western bloc, has been perceived as a threat to the US and European interests. US Secretary of State Antony Blinken recently indicated the cooperation between Iran and Russia threatens the wider European security, alleging missile transportations from Iran to Russia for using in the war against Ukraine.
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However, as an economic alliance, though the BRICS might not have a major impact on military and defense cooperation among allies, Iran would be able to reduce the crippling impacts of the recurrent sanctions by the US. The United States, Germany, Britain, and France together imposed fresh sanctions, including against the Iranian national airline, in September, to exemplify a recent one. On this backdrop, the entry of the Persian country into the bloc has several far reaching implications.
Hailed as a strategic attempt to grow stronger ties with key BRICS members, Iran can engage in better trade with them, including the energy and oil exports, without depending on the US dollar. The BRICS bloc is reportedly planning to introduce an alternative, potentially gold-backed currency to the US dollar, damaging the later’s hegemony in international transactions. With all the new developments, Iran could undoubtedly make use of its participation in the bloc as one of the largest oil and gas reserves in the world.
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Notably, with US sanctions and the trade war with China and Russia, the leading BRICS countries too are lured into the Iranian energy sources. The Persian country is also looking for foreign investment to upgrade its energy infrastructure. The engagement with BRICS includes joint projects on areas such as energy, mining, infrastructure, and technology. Moreover, as Russia and China both have rivalries with the West and the US in particular, the Iranian inclusion into the bloc could be utilised to further challenge the US influence while expediting the journey to a multipolar world order.
However, the priorities of other key members of the bloc, including Brazil, South Africa, and India, which have key energy ties with Iran but cannot upset the US, may not push the anti-Western moves, potentially limiting Iran and other powers leveraging the BRICS for materialising their strategic objectives.
All things considered, Iran, to a great extent, could definitely sail through the US and western sanctions by being a member of the BRICS, and the country is striving hard to enhance its relationships and economic cooperation with favorable countries to overcome the US-imposed blockage and to make use of its vast energy resources.
