Esteemed President Ramaphosa, ladies and gentlemen, friends,
I am pleased to greet representatives of government institutions
and business, specialists and industry experts who have gathered
for this meeting of the BRICS Business Forum.
I would like to note that holding such business forums on a regular
basis, along with the systemic work of the BRICS Business Council,
which brings together top businessmen and heads of major companies
of the five countries, plays an immense practical role in promoting
mutual trade and investments, enhancing cooperation ties and expanding
direct dialogue among the business communities –
and thus effectively contributes to accelerated socio-economic growth
of our states and achievement of the Sustainable Development Goals.
It is important that this Forum focuses on such pressing issues
as the post-pandemic economic recovery of the BRICS states,
improvement of citizens' well-being, industrial modernization,
development of effective transport and logistics chains,
and stimulation of equitable technology transfers.
These challenging and complex tasks need to be tackled against
the backdrop of the increasing volatility in stock, currency,
energy and food markets, coupled with substantial inflationary pressure
stemming from, inter alia, the irresponsible large-scale money creation
by a number of countries seeking to mitigate the effects
of the pandemic, which has led to the accumulation
of private and public debt.
The global economic situation is also seriously affected
by the illegitimate sanctions practice and illegal freezing of assets
of sovereign states, which essentially amounts to the trampling upon
all the basic norms and rules of free trade and economic life –
norms and rules that not so long ago seemed immutable.
Shortage of resources, growing inequality, rising unemployment,
and aggravation of other chronic problems in the global economy are
the direct consequences of this.
Prices for food, basic agricultural products and crops are forced up,
making the most vulnerable, poor countries suffer the most.
Importantly, under these circumstances,
the BRICS states have stepped up their interaction,
and our joint work to ensure economic growth and sustainable
development brings concrete, tangible results.
More and more new infrastructure and investment projects are being
launched, mutual trade is growing, industry contacts are expanding.
The main thing is that our cooperation is based on the principles
of equality, partner support, and respect for each other's interests.
And that is what lies at the core of our Association's forward-looking
strategic course – the course that reflects the aspirations of most
of the world’s community, the so-called global majority.
The figures speak for themselves.
Over the last decade, mutual investments among the BRICS countries have
increased six-fold. Their overall investments in global economy have
doubled, and their total exports have reached 20 percent
of the world exports.
As for Russia, the trade volume with our BRICS partners has
increased by 40.5 percent, reaching a record of over 230 billion US dollars.
In the first half of this year it grew by 35.
6 percent compared with the same period in 2022
and constituted 134.7 billion US dollars.
I would also like to point out that the share of the BRICS countries,
with their population totalling more than three billion people,
now accounts for nearly 26 percent of the global GDP;
our five countries are ahead of the G7 in terms of purchasing power
parity (the forecast for 2023 is 31.5 percent against 30 percent).
The objective and irreversible process of the de-dollarization of our
economic ties is gaining pace.
We are working to fine-tune effective mechanisms for mutual settlements
and monetary and financial control.
As a result, the share of US dollar in export and import operations
within BRICS is declining: last year it stood at only 28.7 percent.
Incidentally, during this summit we will discuss in detail the entire
range of issues related to the transition to national currencies in all
areas of economic cooperation between our five nations.
The BRICS New Development Bank,
which has already become a credible alternative to existing Western
development institutions, has a great role to play in these efforts.
It is only natural that enhancing connectivity and creating new
sustainable traffic arteries have become a shared priority
in cooperation between our five countries.
In this context, the BRICS Business Council's initiative to work out
modern intermodal logistics solutions and develop railway transport
corridors is of particular importance.
For its part, Russia actively works to redirect its traffic
and logistics flows to reliable foreign partners,
including in the BRICS states.
Our flagship projects include the Northern Sea Route and the new
International North‑South Transport Corridor.
These two major transport arteries aim to provide the shortest and most
cost-effective trade routes to link major industrial,
agricultural and energy hubs with consumer markets.
With regard to the Northern Sea Route,
I would like to emphasize that Russia has already adopted and launched
a large-scale, multi-year plan to develop its infrastructure.
We intend to build fuel terminals,
hub ports to ensure connections with road and rail transport.
The icebreaking fleet is being expanded,
first of all by commissioning nuclear-powered vessels that
have no analogues in the world.
As for the North‑South Transport Corridor,
it will connect Russian ports on the Arctic seas and the Baltic Sea
with offshore terminals in the Persian Gulf and Indian Ocean,
thereby providing opportunities to increase cargo transportation
between Eurasian and African countries.
Besides, this will certainly give impetus to developing new industrial,
trade and logistics facilities along the route.
Russia stands for greater cooperation within BRICS as regards reliable
and uninterrupted supplies of energy and food resources
to the world markets.
We are consistently increasing supplies of fuel,
agricultural products and fertilizers to countries in the Global South,
making a significant contribution to strengthening global food
and energy security, addressing acute humanitarian issues and fighting
hunger and poverty in countries in need.
All these issues, in particular,
were discussed in depth at the recent Russia–Africa Summit.
For example, last year trade in agricultural products
between Russia and African states grew by 10 percent and amounted
to 6.7 billion US dollars.
And in January-June this year, it increased by another record 60 percent.
Our country is and will remain a responsible
supplier of food to the African continent.
Russian grain exports to Africa amounted to 11.
5 million tonnes in 2022 and almost 10 million tonnes
in the first six months of 2023.
This is despite the unlawful sanctions imposed on us that seriously
hinder the export of Russian food products and complicate transport
logistics, insurance and bank payments.
Russia is being deliberately obstructed in the supply of grain
and fertilizers abroad and at the same time we are hypocritically
blamed for the current crisis situation on the world market.
This has been clearly seen in the implementation of the so-called
”grain deal“ concluded with the participation of the UN Secretariat
and initially aimed at ensuring global food security,
reducing the threat of hunger and providing aid
to the poorest countries.
We have repeatedly drawn attention to the fact that in a year under
the deal, a total of 32.8 million tonnes of cargo has been exported from Ukraine,
of which over 70 percent have reached high- and upper-middle-income
countries, including the European Union.
And only about three percent have gone to the least developed
countries – that is, less than one million tonnes.
None of the terms of the so-called deal concerning the lifting
of sanctions imposed on Russian exports of grain and fertilizers
to world markets have been fulfilled.
Obligations to Russia in this regard have been simply ignored.
Even our free transfer of mineral fertilizers blocked in European ports
has been obstructed. In fact, this is a purely humanitarian campaign
that should not in principle be subject to any sanctions.
With these facts in mind, since July 18,
we have refused to further extend the so-called deal.
And we will be ready to get back to it,
but only if all obligations to the Russian side are actually fulfilled.
I have repeatedly said that our country has the capacity to replace
Ukrainian grain, both commercially and as free aid to needy countries,
especially since our harvest is again expected to be perfect this year.
As a first step, we have decided to gratuitously provide six African
countries with 25‑50 thousand tonnes of grain each with
free delivery of these cargoes.
Negotiations with partners are being completed.
Among the priority areas of interaction we also see further
coordination of approaches of the BRICS members on the subject
of supporting small and medium-sized enterprises.
This is an important part of the overall economic agenda of the Group
of Five, which implies assistance to the widest circles of citizens
engaged in business activity as regards administrative and tax
regulation, digitalization, e-commerce,
and participation in the value chains.
I would note that thanks to the state support programmes,
the entrepreneurs from the BRICS countries successfully adapt
to the constantly changing situation in the global markets.
They find new partners and new sales channels,
attract additional funding and use more actively modern technologies.
It is equally important to continue developing cooperation within BRICS
in terms of decarbonizing the economy,
reducing human impact on nature and adapting to the changing climate.
Russia is ready to work jointly to promote more balanced approaches
to the climate change in the international arena.
Our country is consistently implementing the National
Low-Carbon Development Strategy.
We plan to reach carbon neutrality of the Russian economy not later
than 2060, including through the introduction of technological
innovations, modernization of infrastructure for access to affordable
and clean energy, conservation of ecosystems on land and sea.
We understand that the implementation of the climate goals can be
facilitated by a variety of technologies,
including those that have been in use for a long time already,
such as nuclear generation, hydropower and gas motor fuel.
To sum it up, I would like to reiterate that the multifaceted
partnership and cooperation within the BRICS not only makes
a significant contribution to ensuring the sustainable growth of our
states but also generally promotes global economic recovery
and successful achievement of global development goals and targets set
by the United Nations – to fight poverty,
expand people's access to quality healthcare,
eradicate hunger and improve food security.
Therefore, I am confident that the BRICS Business Forum and Business
Council will continue their creative work aimed at expanding contacts
between the business circles of the Group of Five countries and jointly
implementing new mutually beneficial projects.
In conclusion, I would like to invite representatives of your
countries’ business circles to attend the Eastern Economic Forum
in Russia that will take place on September 10–13 in the city of Vladivostok, where, by tradition,
the discussions will focus on issues that are also of interest
to the business communities of the BRICS countries.
Thank you for your attention.