16 July 2014, 07:22

Putin arrives in Brazilian capital city to take part in BRICS summit closing day

Putin arrives in Brazilian capital city to take part in BRICS summit closing day

Russian President Vladimir Putin has arrived in the Brazilian capital city, Brasilia, where he will take part in the second day of the two-day BRICS countries summit, Brazil, Russia, India, China and South Africa. The meeting will in an outreach format involving the leaders of a number of Latin American countries. The Russian president plans to have separate meetings with some of them on the summit sidelines.

Putin, who is on a Latin American tour, has already visited Brasilia for talks with President Dilma Rousseff. On Tuesday, he left Brasilia for Fortaleza to take part in the first day of the BRICS summit.

Later on Wednesday, Putin will round off his Latin American tour. Prior to Brazil, the Russian leader visited Cuba, Nicaragua and Argentina.

BRICS countries call for all-embracing dialogue and de-escalation of conflict in Ukraine

In a declaration adopted at the summit in Brazil, BRICS countries call for an all-embracing dialogue in Ukraine, de-escalation of the conflict, self-control for all parties involved and a search for a peaceful settlement. The declaration reads that the BRICS countries express grave concern over the situation in Ukraine and hope for a peaceful settlement in full accordance with the UN Charter and widely recognized human rights and core freedoms.

The Kiev government has been carrying out a military operation in the east of Ukraine since April. It is aimed against the residents of the region who were unhappy with the February coup in Kiev. The operation has already resulted in multiple casualties. Moscow describes the action as punitive and urges Kiev to stop it immediately, reports RIA Novosti agency.

The summit meeting of heads of state of the BRICS countries, namely Brazil, Russia, India, China, and South Africa ends in the Brazilian capital city Brasilia on Wednesday. The BRICS leaders will arrive in the capital city to meeting in an outreach format along with the leaders of a number of Latin American countries.

Contacts in such a format, which was initiated at the last BRICS summit in South Africa when the BRICS leaders met with leaders of the African Union, were developing successfully, Russian President Vladimir Putin said on Tuesday. "I think such contacts with the leaders of various regions promote the growth of our association's authority," he noted.

On the first day of the BRICS summit, the leaders - Dilma Rousseff, Vladimir Putin, Narendra Modi, Xi Jinping and Jacob Zuma - worked in the city of Fortaleza, on Brazil’s northeastern coast. They had two meetings, in narrow and extended formats, and discussed the most pressing problems over a working breakfast.

The results of the meetings will be committed to paper in final documents - the Fortaleza Declaration and the Fortaleza Action Plan, which will assess the current global political and economic situation and reflect the BRICS countries’ common approaches to key issues of international cooperation. Apart from that, the leaders approved a treaty on a BRICS pool of foreign currency reserves and agreement on the Development of a BRICS Bank.

Putin proposes BRICS energy association and reserve fuel bank

Russian President Vladimir Putin has relayed Russia's initiatives in respect of energy safety for the BRICS countries. The initiatives comprise setting up an energy association, a reserve fuel bank and an institute of energy policy.

Putin said at a BRICS leaders' meeting in expanded format that these steps could consolidate the energy safety of our countries.

BRICS group creates development bank

The BRICS group of emerging powers launched a $50 billion development bank Tuesday to be based in Shanghai and a $100 billion crisis contingency fund, according to a joint declaration.

The New Development Bank's first president will be from India, according to the declaration released at a summit in Fortaleza, Brazil, AFP reports. The bank will have an initial subscribed capital of 50 billion US dollars followed by an authorized capital of 100 billion US dollars, equally shared among Brazil, Russia, China, India and South Africa. On Russia's part, the agreement was signed by Minister of Finance Anton Siluanov.

The Contingency Reserve Arrangement will have an initial size of 100 billion US dollars and will help countries avoid "short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements."The bank and fund are seen as counterweights to the Western-dominated World Bank and International Monetary Fund, which BRICS nations say need more reform to give emerging nations more voting rights.

On Tuesday, the head of VEB (the State Corporation "The Bank for Development and Foreign Economic Affairs" – Vnesheconombank) Vladimir Dmitriyev reported that Russia, China, India, Brazil and South Africa will send 10 people each who will become the professional backbone of the new bank. Dmitriyev pointed out that it has already been decided to connect the national development banks to the work of the finance ministries of the BRICKS countries in an effort to set up the Development Bank. It is unknown yet who will be at the head of the new bank.

The idea of setting up an international development institution of their own for countries with developing economies was first expressed in BRICS two years ago but the stumbling block was the distribution of capital shares. The new bank will become a symbol of the growing influence of countries with developing economies on the global financial structure traditionally dominated by Europe and the US.

The idea of setting up a bank was put forward by India which thus proposed to upgrade the role of BRICS in world economy and support the developing countries. Capital will be distributed among the participating countries in equal shares. In the first years each country is to deposit 2 billion US dollars. According to Russian Minister of Finance Anton Siluanov, the bank will be opened for admitting new participants from the UN but the BRICS share is not to be less than 55%. All decisions will be taken by a special majority providing the support of four out of five BRICKS representatives, or two thirds of the votes. The bank is expected to start working next year if all the participants manage to ratify the documents and provide the required sums in their state budgets. The bank is expected to finance the member-states' infrastructural projects.

Putin calls BRICS leaders to develop collective approaches to resolution of urgent problems - Lavrov

The leaders of BRICS (Brazil, Russia, India, China and South Africa) countries should not seek confrontation with other members of the global community but develop collective approaches toward the resolution of urgent problems, Russian President Vladimir Putin said Tuesday, according to Russian Foreign Minister Sergei Lavrov.

"The (BRICS) summit confirmed that BRICS members, while speaking against unilateral actions in the world economy and politics, are not seeking confrontation but propose developing collective approaches toward the resolution of any problems," Lavrov said, reports Itar-Tass.

Putin to take part in BRICS summit in Brazil on July 15

Today Russian President Vladimir Putin will take part in the summit of BRICS (Brazil, Russia, India, China and South Africa) opening in Fortaleza in the north-east of Brazil, reports TASS.The Russian president will arrive in Fortaleza from the capital Brasilia in the evening local time (at night Moscow time) to immediately take part in a bilateral meeting with Chinese President Xi Jingpin and to meet the new Prime Minister of India Narendra Modi who replaced Manmohan Singh in that position in May this year.

The summit is to open in the evening Moscow time. The leaders of the BRICS countries will discuss political issues and global management problems. A number of important economic documents are expected to be signed, such as the establishment of a BRICS development bank and a currency reserves pool. Russian president's aide Yuri Ushakov said that thus "the foundation for a macroeconomic coordination of the five countries will be laid." "The new institutions will allow to consolidate the global financial system, which is especially important on the background of the IMF reform that has hit a dead end," the Kremlin representative said. 

Ushakov said that the BRICS development bank's main office will be in Shanghai.

The BRICS leaders will pay special attention to international issues and regional security problems, including the situation in Syria and Afghanistan, the settlement of the Middle East problems and the crisis in Ukraine. "The leaders of the five countries stand for the settlement of conflicts politically and diplomatically, they reject the policy of sanctions, power games and infringing on countries' sovereignty," the Russian president's aide stressed.

Summarizing the results of the first day of the summit, it is planned to adopt a Fortaleza Declaration and roadmap estimating the current global political and economic situation and reflecting the BRICS countries' common approach to topical issues of international cooperation.

On the second day, 16 July, the summit will be continued in the Brazilian capital Brasilia. 

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