Putin Proposes New Insurance Mechanism For BRICS
Russian President Vladimir Putin has proposed the creation of a new insurance mechanism and a common grain market among BRICS countries, calling for greater cooperation among member nations and the wider Global South.
Putin made the proposal on Sunday while addressing the concluding session of the 18th BRICS Summit. He said BRICS countries should work together to strengthen economic cooperation and reduce their dependence on systems vulnerable to external pressure.
“We have independent routes for moving capital, labour and technologies. In fact, we can operate regardless of outside pressure,” Putin said.
Without giving details of how the proposed mechanisms would work, Putin said Russia was putting forward the ideas of creating an insurance mechanism and a grain market and invited other BRICS members to participate.
The proposal comes as Russia continues to face extensive sanctions from Western countries over its war in Ukraine. The G7, European Union and the UK have restricted Western companies from providing insurance for ships carrying Russian crude oil unless the oil is sold within a specified price cap. These restrictions have affected Russia’s crude oil exports.
Putin also praised the work of the New Development Bank (NDB), the multilateral development bank established by BRICS countries. According to him, the bank is currently handling projects worth around USD 140 billion.
Putin calls for joint response to global challenges
Addressing the broader role of BRICS, Putin said the grouping should take a comprehensive approach to global problems instead of dealing only with their immediate effects.
“As global challenges keep surfacing, we should adopt a holistic approach to address both the symptoms and root causes,” he said.
He also called on countries of the Global South to work together to improve global governance and address both traditional and emerging security threats.
Putin said the growing participation in BRICS meetings shows that international interest in the grouping is increasing. He argued that many countries are attracted to BRICS because of its emphasis on independent decision-making, collective problem-solving, international law and the principles of the UN Charter.
According to Putin, the BRICS format also provides an opportunity for full members, partner countries and other interested states and international organisations to engage in direct dialogue.
BRICS expands its global footprint
BRICS was originally formed by Brazil, Russia, India, China and South Africa. The grouping expanded in 2024 with the addition of Egypt, Ethiopia, Iran, the United Arab Emirates and Saudi Arabia, while Indonesia joined in 2025.
Several other countries, including Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan and Vietnam, have joined as BRICS partner countries.
With its expanded membership, BRICS has become an increasingly significant grouping of emerging economies, representing nearly half of the world’s population and a substantial share of the global economy and trade.Suggested headline: Russian President Putin proposes new insurance mechanism and grain market for BRICS
