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The real reason Iran decided to join BRICS

TL;DR

  • Iran, alongside the UAE, Egypt, and Ethiopia, joined the BRICS alliance in January 2024.
  • Argentina declined BRICS membership under President Javier Milei, while Saudi Arabia is still deciding.
  • US sanctions had crippled Iran’s economy, pushing it towards BRICS for economic revival.

Rolling into 2024, Iran, alongside the United Arab Emirates, Egypt, and Ethiopia, inked their membership with the BRICS alliance, marking a significant pivot in global economic alliances. This expansion came as Argentina, led by its fresh president Javier Milei, turned down the offer, citing skepticism about the bloc’s benefits. Meanwhile, Saudi Arabia’s decision to join remains in the air, as they’re still mulling over their invitation.

For Iran, this was a vital move. Hammered by US sanctions for its alleged involvement in spreading terrorism and conflict globally, Iran’s economy was on the ropes. Financial streams dried up, and global trade with allies took a nosedive, leaving the nation in a dire economic state.

Iran’s Strategic Pivot for Economic Resilience

Iran’s Finance and Economic Affairs Minister, Ehsan Khandouzi, didn’t mince words about their reasons for joining BRICS. He pointed out the dire need for foreign investments as sanctions had significantly curtailed the inflow of foreign capital, putting their economy in a downward spiral. Khandouzi emphasized the government’s commitment to continuing inflation control policies and maintaining financial discipline across banking, monetary, and budgetary sectors. According to him, this move to BRICS is expected to be a game-changer for both the country’s populace and its producers, potentially heralding a new era of economic prosperity.

But Iran’s ambitions don’t stop with BRICS. In 2023, it also joined the Shanghai Cooperation Organization (SCO), bolstering ties with China and extending its diplomatic reach to other SCO members like Pakistan, Kazakhstan, Kyrgyzstan, and Uzbekistan.

Beyond Economic Interests: A Global Dialogue on Governance

BRICS’ geopolitical moves are all about shaping the global governance narrative. Brazilian President Luiz Inacio Lula da Silva hosted Russian Foreign Minister Sergey Lavrov in Brazil’s capital. This meeting was part of Lavrov’s visit to Brazil for the G20 meeting, where both leaders engaged in discussions encompassing a wide range of topics. According to reports from Brasil 247, a partner of TV BRICS, their dialogue included deliberations on bilateral agendas, the ongoing debates within the G20 forum, and pressing issues concerning new global governance structures and the strategic role of BRICS in shaping these dynamics.

During this significant diplomatic exchange, Lavrov conveyed a message of support from Russian President Vladimir Putin, congratulating Lula on Brazil’s successful organization of the foreign ministers’ meeting in Rio de Janeiro.

Putin’s friendly act showed that he wanted to improve links between Russia and Brazil, showing that both countries want to work together more within the BRICS framework and beyond. After Putin’s answer, Lula thanked him and promised that he would be at the upcoming BRICS meeting in Kazan.

The conversation also touched upon the necessity of enhancing financing mechanisms for developing countries, a topic of significant interest to both leaders. Earlier, at the G20 foreign ministers’ meeting, Lavrov had emphasized Russia’s commitment to promoting the development of ties between the G20 and BRICS in every possible way.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Jai Hamid

Jai Hamid is a passionate writer with a keen interest in blockchain technology, the global economy, and literature. She dedicates most of her time to exploring the transformative potential of crypto and the dynamics of worldwide economic trends.

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