Russia's Putin proposes new insurance system and grain market for Brics nations

Russia on Sunday proposed a new insurance mechanism and a collaborative initiative for the grain market for Brics member states, with President Vladimir Putin urging the grouping to adopt a holistic approach towards pressing global challenges.

Russian President Vladimir Putin attends a session of the BRICS Plus Outreach format in New Delhi. (AP)Putin proposed the initiatives as the Brics member states and partner countries came together for an outreach session at the concluding day of the Brics Summit hosted by India against the backdrop of wide-ranging sanctions imposed by the West on Russia for the invasion of Ukraine. “We have independent routes for moving capital, labour and technologies. In fact, we can operate regardless of outside pressure,” Putin said. “We have some promising initiatives, such as creating an insurance mechanism and a grain market. These are Russian proposals, and we invite all other member states to make use of those.”

The proposals came against the backdrop of the European Union (EU), the G7 and Britain prohibiting Western companies from insuring any merchant vessel transporting Russian energy unless the oil is purchased at or below a specified price cap. Widening sanctions on the insurance sector have already hit Russian crude exports.

Putin complimented the functioning of the New Development Bank, a multilateral development bank established by Brics states that is handling projects worth $140 billion, as he backed a “holistic approach” towards international challenges.

“As global challenges keep surfacing, we should adopt a holistic approach to address both the symptoms and root causes,” he said.

“Global South countries should jointly advance better [global] governance structure and tackle both traditional and non-traditional security threats.”

He contended that the global stature of Brics is on the rise because of the bloc’s focus on charting an independent course to combat global challenges. “The broad participation in today’s meeting confirms that international interest in Brics continues to grow. Many around the world find our core values and ideals appealing, including our commitment to charting an independent course and a desire to resolve problems collectively, guided by international law and key provisions of the UN Charter,” he said.