Russian President Vladimir Putin has said the multi-nation Brazil, Russia, India, China, and South Africa (BRICS) group should explore a SWIFT-like cross-border payments system immune to Western sanctions as well as use national digital currencies in financing investment projects to end U.S. dollar dominance.

Ahead of the 16th annual summit of leaders of BRICS to be hosted by Russia, Mr. Putin also said the time has not come yet for a common BRICS currency but added that the 10-nation bloc is exploring the use of digital currencies for which his country is working with India and other nations.

Russia, which was slapped with sweeping sanctions by the U.S. and its allies in the aftermath of the conflict with Ukraine that erupted in February 2022, wants to circumvent the global financial system by creating a new payments system based on a network of commercial banks linked to each other through the BRICS central banks.

“Advocating a cautious approach in creating a new reserve currency due to differences in the structure and quality of the economies of the BRICS member states,” Mr. Putin said these countries should focus on the use of the national currencies, new financial instruments and the creation of an analogue of SWIFT.

Prime Minister Narendra Modi is scheduled to attend the summit in the Tatarstan city of Kazan on October 22 and 23.

It will also be the first ever summit of the grouping after its expansion with the entry of Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE). Brazil, Russia, India, China and South Africa are the original members of the BRICS.

“At this point of time it (a BRICS currency) is a long-term prospect. It is not under consideration. BRICS will be cautious and act gradually, move slowly. The time has not come yet,” Mr. Putin told a select group of senior editors from the BRICS member states at a media interaction on Friday at his official residence in Novo-Ogaryovo, about 50 km from Moscow.

The Russian strongman’s remarks came in reply to a question about plans by the BRICS – a grouping conceived as a geopolitical and geoeconomic counterweight to the West – to create a reserve currency.

Replying to a question, Mr. Putin said the BRICS was now studying the possibility of expanding the use of the national currencies and creation of instruments that would make such work safe. In particular, the BRICS states were considering the possibility of using electronic instruments, he added.

“We are looking into the possibility of expanding the use of national currencies and settlements and want to establish the tools that would make this safe and secure enough.” Mr. Putin said the grouping will have to come up with a toolkit that will be under the supervision of the respective BRICS institutions.

“It may be another very good step in the development of the Global South with our direct active engagement. We will be talking about that during the (Kazan)summit. We are already in consultations with the Chinese and the Indian friends with the Brazilians. Also, we have had a round of consultations with South Africa.”

On a potential BRICS reserve currency, Mr. Putin said the member states needed to work gradually without haste.

“Considering their population the BRICS economies in terms of structure should be comparable and more or less equal. Otherwise, we will face even bigger issues than those that occurred in the European Union (EU) for one when a single currency was introduced to the countries whose economies were not comparable and not equal. So, it is a long-term prospect,” he said.

The Russian president also underlined the need for establishing relations between the central banks and to ensure reliable exchange of financial information that is independent of those international instruments of international information exchange that introduce “certain restrictions for political reasons and violate the principles of global economy.”

He said he was referring to the formation in BRICS of an analogue of SWIFT, something that “ensures international settlements.” SWIFT provides the main messaging network through which international payments are initiated.

Mr. Putin mentioned that Russia, along with other BRICS members, has already been working on a SWIFT-like financial messaging system and the use of national digital currencies in financing high-growth investment projects.

Alongside digital currencies, the BRICS bloc is preparing to launch the BRICS Pay platform, a blockchain-based payment system aimed at facilitating cross-border transactions within the alliance. Noting that digital currencies could benefit both BRICS members and developing economies, Mr. Putin highlighted the group’s broader strategy to reduce reliance on the U.S. dollar and assert greater economic independence.

“I think the United States needs to give it a thought that they have spoiled the relationship with Russia by imposing continuous sanctions, and it has a negative impact eventually on them. So, the entire world is thinking whether dollar is worth using,” he said.

“Now the volume of dollar is reducing, both in settlements and in reserves too. Even traditional allies of the U.S. are reducing their dollar reserves,” Mr. Putin claimed.

He also said that 95% of all the external trade of Russia is denominated in national currencies. The BRICS countries, among other things, are pressing for global governance reform, creating parallel institutions to compete with established ones and contesting the role of the dollar.

While countries like Russia and China are seeking to create an alternative global financial and technological system to circumvent the U.S. dollar dominance as part of what is known as a de-dollarisation agenda, the Indian stand has been that it will not target the U.S. dollar.

India has made it clear that it has no plans to end its reliance on the U.S. dollar. External Affairs Minister S. Jaishankar recently said India is not interested in the de-dollarisation agenda and that it will use the U.S. dollar wherever it is accepted as a form of payment.

He also made it clear that “there is no malicious intent towards the U.S. dollar”.

“We have never actively targeted the U.S. dollar. This is not part of our economic, political or strategic policy. Some others (BRICS members) may have done this (de-dollarisation). We have a natural concern. We often have trading partners who lack dollars for transactions,” he said at a recent event.

With the entry of the five new members to create a BRICS plus (BRICS+), the grouping has emerged as a formidable economic bloc. It now accounts for half of the world population, 38% of the global GDP and 40% of the global trade, according to available data.

Ukraine’s top military commander says his forces now control 1,000 square km of Russia’s neighbouring Kursk region – the first time a Ukrainian military official has publicly commented on the gains of the lightning incursion that has embarrassed the Kremlin.

General Oleksandr Syrskyi made the statement in a video posted Monday (August 12, 2024) to Ukrainian President Volodymyr Zelenskyy’s Telegram channel. In the video, he briefed the president on the front-line situation.

“The troops are fulfilling their tasks. Fighting continues actually along the entire front line. The situation is under our control,” Mr. Syrskyi said.

Russian forces are still scrambling to respond to the surprise Ukrainian attack after almost a week of fierce fighting.

Russian President Vladimir Putin said the incursion, which has caused more than 100,000 civilians to flee, is an attempt by Kyiv to stop Moscow’s offensive in eastern Ukraine’s Donbas region and gain leverage in possible future peace talks.

Mr. Zelenskyy confirmed for the first time that the Ukrainian military is inside the Kursk region. On Telegram, he praised his country’s soldiers and commanders “for their steadfastness and decisive actions.” He did not elaborate.

The Ukrainian operation is under tight secrecy, and its goals remain unclear. The stunning manoeuvre that caught the Kremlin’s forces off guard counters Russia’s unrelenting effort in recent months to punch through Ukrainian defences at selected points along the front line in eastern Ukraine.

Speaking Monday (August 12, 2024) at a meeting with top security and defence officials, Mr. Putin said the attack that began on August 6, 2024, appeared to reflect Kyiv’s attempt to achieve a better negotiating position in possible future talks to end the war. He insisted Moscow’s army would prevail.

Mr. Putin said Ukraine may have hoped the attack would cause public unrest in Russia, but that it has failed to do so, and he claimed the number of volunteers to join the Russian military has increased because of the assault. He said Russian forces will carry on with their offensive in eastern Ukraine regardless.

“It’s obvious that the enemy will keep trying to destabilise the situation in the border zone to try to destabilise the domestic political situation in our country,” Mr. Putin said. Russia’s main task is to “drive the enemy out of our territories and, together with the border service, to ensure reliable cover of the state border.”

Acting Kursk Governor Alexei Smirnov reported to Mr. Putin that Ukrainian forces had pushed 12km into the Kursk region across a 40km front and currently control 28 Russian settlements.

Mr. Smirnov said 12 civilians have been killed and 121 others, including 10 children, have been wounded. “About 121,000 people have been evacuated or left the areas affected by fighting on their own,” he said.

“Tracking down all the Ukrainian units that are roaming the region and creating diversions is difficult,” Mr. Smirnov said, noting that some are using fake Russian IDs.

The governor of the Belgorod region adjacent to Kursk also announced the evacuation of people from a district near the Ukrainian border.

Mr. Zelenskyy said the territory now controlled by Ukrainian forces was used to strike Ukraine’s Sumy region many times, adding that it is “absolutely fair to destroy Russian terrorists where they are.” “Russia brought war to others. Now it is coming home,” he said in a video posted on Telegram.

Russia has seen previous incursions into its territory during the nearly 2 1/2-year war, but the foray into the Kursk region marked the largest attack on its soil since World War II, constituting a milestone in the hostilities. It was also the first time the Ukrainian army has spearheaded an incursion rather than pro-Ukraine Russian fighters.

The advance delivered a blow to Mr. Putin’s efforts to pretend that life in Russia has been largely unaffected by the war. State propaganda tried to play down the attack, emphasising the authorities’ efforts to help residents of the region and seeking to distract attention from the military’s failure to prepare for the attack and quickly repel it.

Kursk residents recorded videos lamenting that they had to flee the border area, leaving behind their belongings, and pleading with Mr. Putin for help. But Russia’s state-controlled media kept a tight lid on any expression of discontent.

Retired General Andrei Gurulev, a member of the lower house of the Russian parliament, criticised the military for failing to protect the border.

“Regrettably, the group of forces protecting the border didn’t have its own intelligence assets,” he said on his messaging app channel. “No one likes to see the truth in reports, everybody just wants to hear that all is good.”

The combat inside Russia rekindled questions about whether Ukraine was using weaponry supplied by NATO members. Some Western countries have balked at allowing Ukraine to use their military aid to hit Russian soil, fearing it would fuel an escalation that might drag Russia and NATO into war.

Though it’s not clear what weapons Ukraine is using across the border, Russian media widely reported that American Bradley and German Marder armoured infantry vehicles were there. The claim could not be independently verified. Ukraine has already used U.S. weapons to strike inside Russia.

Italian Foreign Minister Antonio Tajani said in an interview published Monday (August 12, 2024) that the weapons provided by his country “cannot be used to attack Russia on its territory.”

Meanwhile, German Defence Ministry spokesperson Arne Collatz said Monday (August 12, 2024) that legal experts agree that “international law provides for a state that is defending itself also to defend itself on the territory of the attacker. That is clear from our point of view, too.”

Russia’s Defense Ministry said Monday (August 12, 2024) that reinforcements sent to the area backed by air forces and artillery had fended off seven attacks by Ukrainian units near Martynovka, Borki and Korenevo during the previous 24 hours.

The ministry said Russian forces also blocked an attempt by Ukrainian mobile groups to forge deep into Russian territory near Kauchuk.

Pasi Paroinen, an analyst with the Finland-based Black Bird Group open-source intelligence agency, which monitors the war, said the toughest phase of Ukraine’s incursion is likely to begin now as Russian reserves enter the fray.

People gather at Republique plaza in a protest against the far-right on July 3, 2024 in Paris
| Photo Credit: AP

French voters face a decisive choice on July 7 in the run-off of snap parliamentary elections that could see the country’s first far-right government since the World War II Nazi occupation — or no party emerging with a majority at all. In Sunday’s first round, the National Rally came first with an estimated one-third of the votes. The New Popular Front coalition that included the center-left, green and left forces polled close to 29% of the vote and came in second place, ahead of President Emmanuel Macron’s centrist alliance.

If the National Rally or the Left alliance gets a majority, Mr. Macron will be forced to appoint a Prime Minister belonging to a new majority. In such a situation — called “cohabitation” in France — the government would implement policies that diverge from the President’s plan. The rise of a far-right party in France has not been sudden. When Mr. Macron was re-elected in 2022, his vote share did not increase in any department. In contrast, his challenger from the far-right National Rally Marine Le Pen’s vote share rose across the country, resulting in the far-right’s best-ever performance. More importantly, the rise of the Right in European politics is not limited to France.

Also Read | The far-right swing in European Parliament elections | Explained

In last month’s European Parliamentary Elections, right-wing and far-right parties achieved their best performance in the legislative body’s history. The far-right European Conservatives and Reformists Group and the Identity and Democracy Group together increased their tally from 118 to 131 seats in the Parliament, while the left-Greens’ seat share was reduced to 53 from 71.

Chart 1 | The chart shows the vote share secured by right-leaning parties in the national-level polls of the U.K. and select countries in the European Union. 

Chart appears incomplete? Click to remove AMP mode

The vote share of right-leaning parties is increasing at varying degrees of pace in each country. For instance, the vote share of the National Rally increased from just 4% in 2007 to 19% in 2022. The German party, Alternative for Germany, recorded over 10% vote share in the last two elections, with the Sweden Democrats vote share increasing from 2% in 2006 to 20% in 2022 in Swedish polls.

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Given that most such parties have an anti-immigrant stance, the United Nations High Commissioner for Human Rights on Wednesday called for vigilance, citing narratives that dehumanise migrants and asylum seekers. One other impact may be on the nations’ views about NATO, and the ongoing-war between Russia and Ukraine.

Also Read | Comment: The spectre of neo-fascism that is haunting Europe

Polls by Pew Survey indicate that in some European countries, positive views about NATO and confidence in Ukrainian president Volodymyr Zelenskyy have started to decline. In contrast, slight increases in favourable views towards Russia and confidence in Russian President Vladimir Putin were recorded across many European countries in 2024 compared to a year before.

Table 2 | The table lists responses to four questions — Q1: % who have a favourable opinion of NATO; Q2: % who have a favourable view of Russia; Q3: % who have confidence in Mr. Putin to do the right thing; Q4: % who have confidence in Mr. Zelenskyy to do the right thing. The percentage point change in 2024 from 2023 is also listed.

According to Pew Survey, in several European countries, people who have a favourable view of a right-wing populist party in their country see Russia and Mr. Putin more positively than people with unfavourable views of those parties.

Also Read | Turning inward: The Hindu’s Editorial on the rise of far-right parties in Europe

While their support dropped in 2022 and 2023, confidence in Russia and Mr. Putin has climbed back up in 2024 as shown in Chart 3.

Chart 3 | The chart shows the share who have confidence in Russian President, Vladimir Putin, among supporters of right-wing parties.

Note: This article appeared on the print version on July 4, 2024

Source: Pew Research Centre and ParlGov

Russia’s President Vladimir Putin and North Korea’s leader Kim Jong Un walk during a farewell ceremony upon Mr. Putin’s departure at an airport in Pyongyang, North Korea June 19, 2024.
| Photo Credit: via Reuters

A new agreement between Russia and North Korea reached by their leaders requires the countries to use all available means to provide immediate military assistance in the event of war, North Korean state media said.

The North’s official Korean Central News Agency on Thursday reported the language of the comprehensive strategic partnership agreement reached by its leader Kim Jong Un and Russian President Vladimir Putin in Pyongyang on Wednesday. The agency said Article 4 of the agreement states that if one of the countries gets invaded and is pushed into a state of war, the other must deploy “all means at its disposal without delay” to provide “military and other assistance”.

The deal could mark the strongest connection between Moscow and Pyongyang since the end of the Cold War. Both Mr. Kim and Mr. Putin described it as a major upgrade of their relations, covering security, trade, investment, cultural and humanitarian ties.

The summit came as the U.S. and its allies expressed growing concerns over a possible arms arrangement in which Pyongyang provides Moscow with badly needed munitions for its war in Ukraine, in exchange for economic assistance and technology transfers that could enhance the threat posed by Mr. Kim’s nuclear weapons and missile programme.

Following their summit, Mr. Kim said the two countries had a “fiery friendship”, and that the deal was their “strongest-ever treaty”, putting the relationship at the level of an alliance. He vowed full support for Russia’s war in Ukraine. Mr. Putin called it a “breakthrough document” reflecting shared desires to move relations to a higher level.

North Korea and the former Soviet Union signed a treaty in 1961, which experts say necessitated Moscow’s military intervention if the North came under attack. The deal was discarded after the collapse of the USSR, replaced by one in 2000 that offered weaker security assurances.

South Korean officials said they were still interpreting the results of the summit, including what Russia’s response might be if the North comes under attack, and whether the new deal promises a similar level of protection with the 1961 treaty. South Korean officials didn’t immediately comment on the North Korean report about the details of the deal.

Tensions on the Korean Peninsula are at their highest point in years, with the pace of both Kim’s weapons tests and combined military exercises involving the US, South Korea and Japan intensifying in a tit-for-tat cycle.

The Koreas also have engaged in Cold War-style psychological warfare that involved North Korea dropping tons of trash on the South with balloons, and the South broadcasting anti-North Korean propaganda with its loudspeakers.

Ukraine’s Foreign Minister Dmytro Kuleba. File
| Photo Credit: AP

Ukraine’s Foreign Minister arrived in New Delhi on March 28 for a two-day visit to boost bilateral ties and cooperation with India, which considers Russia a time-tested ally from the Cold War-era.

Dmytro Kuleba will meet with his Indian counterpart Subrahmanyam Jaishankar on March 29, as well as the deputy national security advisor, according to India’s Foreign Ministry. On March 28, Mr. Kuleba will pay his respects to Indian independence leader Mahatma Gandhi at the Rajghat memorial site.

His visit comes a week after Prime Minister Narendra Modi spoke to Ukrainian President Volodymyr Zelenskyy and Russian President Vladmir Putin, whom India has so far avoided criticising over the war in Ukraine. Instead, New Delhi, has stressed the need for diplomacy and dialogue on ending the war and has expressed its willingness to contribute to peace efforts.

On March 20, PM Modi posted on social media platform X, formerly Twitter, to say he had expressed to Mr. Zelenskyy “India’s consistent support for all efforts for peace and bringing in an early end to the ongoing conflict,” adding that the country will continue to provide humanitarian assistance.

This came after Mr. Modi spoke to Mr. Putin to congratulate him on his re-election as President. According to a statement from India’s Foreign Ministry, the two leaders agreed to further strengthen their relationship, while Mr. Modi reiterated that dialogue and peace was the best way forward for the Russia-Ukraine war.

Under Mr. Modi, India has promoted itself as a rising global player who can mediate between the West and Russia on the war in Ukraine.

In his phone call with PM Modi last week, Mr. Zelenskyy said he encouraged India to participate in the Peace Summit that Switzerland has offered to organise.

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“Ukraine is interested in strengthening our trade and economic ties with India, particularly in agricultural exports, aviation cooperation, and pharmaceutical and industrial product trade,” the Ukrainian President said in a post on X.

At the United Nations, New Delhi, has refrained from voting against Moscow, and has ramped up its purchases of Russian oil at discounted prices following the invasion.

Meanwhile, India has stepped up its engagements with Western powers like the United States and the European Union. New Delhi has been trying to reduce its dependance on Moscow for arms and technology because of disruptions in supplies due to the war. India is also part of the Quadrilateral Security Dialogue, or Quad, along with the U.S., Australia and Japan.

On a visit last year, Ukraine’s Deputy Foreign Minister Emine Dzhaparova urged India to play a bigger role in helping end Russia’s invasion, saying Kyiv would “welcome any effort that is directed at resolving the war.”