Sanctions on Russian energy are fostering closer partnerships among BRICS nations and encouraging expansion with major oil producers.
The new members, mainly from the Middle East, aim to provide energy security to the bloc and counterbalance Western dominance.BRICS is a group of major emerging economies, originally including Brazil, Russia, India and China, which was termed in 2001 by then Goldman Sachs chief economist Jim O'Neill in a research paper outlining the potential growth of these powers.
Several oil executives now believe that the sanctions that the West imposed on Russia are encouraging a deeper partnership between BRICS member states. Russell Hardy, the CEO of energy trading firm Vitol, “Looking at the oil markets today ... the Western sanctions on Russia are working. They’re working in the sense that they’re creating less or lower revenues, lower invoice prices for Russian goods.
The expansion of BRICS also means that the bloc holds a significant proportion of the world’s natural resources. BRICS states hold around 5,493 tonnes of gold, compared to the G-7’s 17,527 tonnes. Meanwhile, the G-7’s member states US and Canada produce 20 percent and 6 percent of the world’s oil, respectively, and Russia, Brazil and China together account for 21 percent.