Russia plans to create a grain exchange within BRICS, but China and India do not support the initiative

Russia has announced its intention to establish a grain exchange within BRICS, with formal consultations planned to begin during the St. Petersburg Economic Forum, which will take place from June 18 to 21.

This is reported by AgroReview

The goal of the Russian initiative and the role of BRICS

According to intelligence information, the Kremlin is promoting the idea of creating a new exchange as a tool to strengthen its own position in the global agricultural market and to circumvent Western sanctions. This exchange, according to Russian authorities, is expected to help enhance influence over Global South countries and serve as the first step towards a broader commodity platform that would encompass not only grain but also oil, metals, and gas.

Russia proposes that an “independent” price for grain be established within BRICS on the new trading platform, while minimizing the influence of Western traders and the US dollar. At the same time, the Russian Federation is calling for transactions to be conducted in the national currencies of the participating countries.

The skeptical position of China, India, and other countries

“However, the initiative is unlikely to receive real support. China, Iran, Belarus, and India are currently refraining from active participation due to the risks of secondary sanctions and the threat of losing access to markets. Without their economic involvement, the project will remain declarative,” intelligence sources emphasized.

Thus, despite Russia’s attempts to create an alternative grain exchange to strengthen its position in the global market and reduce the influence of Western financial instruments, key BRICS countries, particularly China and India, are not showing readiness to actively support the project due to risks to their economies.