BRICS countries could become a counterweight to the G7 countries

The expansion of BRICS to include Iran, Ethiopia, Egypt and the United Arab Emirates (UAE) could make the alliance a counterweight to the G7, according to analysts at Bloomberg.

BRICS was founded in 2006 at the St. Petersburg International Economic Forum (SPIEF). The union initially included four countries: Russia, China, India, and Brazil. Later, South Africa joined. Four new states joined the alliance in January of this year.

In addition, Malaysia and Thailand have expressed their desire to join BRICS. This, according to Bloomberg analysts, could further strengthen the alliance's position.

As Bloomberg writes, it has now become easier for new BRICS members to gain access to funding from their partners and to acquire a political platform independent of the United States.

The agency notes that the main impetus for the further expansion of BRICS has become China, which is trying to strengthen its influence on the world stage, constantly “flirting” with countries in contact with the United States.

Bloomberg also writes that attempts to strengthen the influence of BRICS in opposition to the United States are also beneficial to Vladimir Putin, who, in turn, seeks to weaken the “global influence” of Washington.

According to Bloomberg, the entry of major fossil fuel producing countries into the union could give the bloc an opportunity to combat the dollar's dominance in oil and gas trading by switching to other currencies.

Initially, the BRICS countries agreed to pool their foreign exchange reserves to provide each other with emergency assistance. Thus, between 2017 and 2022, trade turnover between the first five members of the bloc - Russia, China, India, Brazil and South Africa - increased by 56% to $422 billion.

To finance their projects, the member countries of the alliance established the New Development Bank (NDB), but with the outbreak of the war in Ukraine, the organization abandoned investment projects in Russia.

Fearing new sanctions from the US, the BRICS countries have opted for continued access to the dollar-dominated financial system rather than aid to Russia. As the alliance expands, that could change, Bloomberg notes.

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