Indian Council of World Affairs

Abstract : The Kazan Declaration is significant for BRICS as a forum, as well as for the new member countries, i.e., Ethiopia, Egypt, Iran and the UAE, which attended the meeting as full-time members for the first time. The declaration echoes their interests and concerns, reflecting the inclusive nature of BRICS. With Saudi Arabia and Türkiye as potential joiners, it is pertinent to look at the Middle East issues voiced in the declaration. 

Introduction 

On 23 October 2024, Brazil, Russia, India, China, South Africa, Ethiopia, Egypt, Iran and the UAE (the BRICS countries) signed the Kazan Declaration at the XVI BRICS Summit, focusing on “Strengthening Multilateralism for Just Global Development and Security.” Russia, holding the chairmanship of the group, hosted the Summit in Kazan after organizing 200 events in 13 different Russian cities. The declaration is a 33-page document with 134 points divided into four distinct segments.[i] The first deals with issues pertaining to strengthening multilateralism for a more just and democratic world order, while the second stresses enhancing cooperation for global and regional stability and security. The third emphasises fostering economic and financial cooperation for global development, whereas the fourth discusses strengthening people-to-people exchanges for social and economic development. The declaration is detailed and comprehensive and will form the basis for the XVII BRICS Summit to be hosted by Brazil in 2025. It is important to look at the significance of the declaration for the new Middle East member countries, i.e., Egypt, Iran and the UAE. 

Multipolarity and Multilateralism 

The first segment of the declaration emphasises the significance of multipolarity and multilateralism, along with the central role of the United Nations in the international system. Aware of the risks associated with the dominance of and dependence on single international entities, the Middle East member countries support multipolarity and multilateralism, advocating reforms in the UN for equitable and inclusive geographical representation. Secondly, the document calls for meaningful participation of Emerging Markets and Developing Countries (EMDCs) and least-developed countries, especially in Africa, Latin America and the Caribbean. With a growing emphasis on its African identity, and to emerge as a dominant regional power in Africa, Egypt would appreciate the increasing role of EMDCs. For the UAE and Iran, EMDCs in Africa and Latin America are markets with potential for economic growth.[ii]

World Trade Organization (WTO) 

BRICS members have emphasised their support for the WTO and advocated for reforms in the institution, with a special focus on the developmental dimension. This is in line with Egypt’s advocacy for economic flexibility in developing countries. In June 2024, the head of Egypt’s Commercial Office, Ahmed Maghawry, underscored the need to support economic flexibility in developing countries by adopting effective policies localising technology and funding trade in debt-affected countries.[iii] Besides, the declaration mentions achieving a well-functioning, two-tier binding WTO dispute settlement system, while welcoming the establishment of the BRICS Informal Consultative Framework on WTO issues. The WTO dispute resolution is an important issue of concern for the new Middle East members with Egypt and UAE being party to a number of disputes. Egypt is a respondent to the complaints filed by Thailand, the US and the European Union on import prohibition. It has also been accused of issues pertaining to anti-dumping by Türkiye and Pakistan.[iv] Similarly, the UAE has complained about Pakistan for violation of anti-dumping measures. When the quartet of Saudi Arabia, Bahrain, UAE and Egypt had isolated Qatar in 2017 blockading air, land and sea access, Doha had filed a complaint against the UAE at WTO for violations of the 1965 International Convention on the Elimination of All Forms of Racial Discrimination. However, the dispute was amicably settled in 2021.[v]

Unilateral Sanctions 

The declaration states concern regarding the disruptive effect of unlawful unilateral coercive measures and illegal sanctions on the economy. For Iran, which has been reeling under such sanctions for decades, the declaration voices and reiterates its concerns and reflects that the non-Western grouping with dominant neighbouring countries, such as Russia, China and India, is not turning a blind eye to its precarious situation. Ten days before signing the declaration, the US imposed new sanctions on Iran’s petroleum industry in response to Tehran’s 1 October attack on Israel, and the foreign ministry spokesperson of Iran, Esmail Baghaei, labelled the sanctions as illegal and unjustified.[vi] On 14 October, the European Council imposed sanctions on seven individuals and seven entities in response to Iran’s missile transfer to Russia. The sanctions will directly impact the ailing aviation industry of Iran, as the seven entities include Saha Airline, Mahan Air and Iran Air.[vii] At the Kazan Summit, Iranian President Pezeshkian emphasised that BRICS should take practical and calculated steps to ensure no country imposes unlawful sanctions on others.[viii]

Sustainable Development Goals and Energy Transition

The Kazan Declaration stresses the inclusive nature of the 2030 Agenda Sustainable Development Goals (SDGs) and emphasises that the implementation should take into account the circumstances, capacities and levels of development of different countries, and political conditionalities of development assistance shall not be allowed to hamper the efforts of international development assistance providers. The Middle East and North Africa (MENA) region has not performed well in achieving the SDGs in 2023; per the Arab Region SDG Index and Dashboards Report 2023, the region scored 59.8 out of 100 on SDG progress, and 14 countries did not achieve any SDGs.[ix] The countries face challenges in achieving goals pertaining to gender equality, eradication of hunger, decent work and economic growth, good health and wellbeing, and clean water and sanitation.[x] Jordan, Tunisia, the UAE, Algeria, Morocco and Oman lead the region in achieving the SDGs while Iraq, Yemen and Syria have performed poorly in achieving the goals.[xi]

Similarly, the declaration reiterates the necessity to consider the national circumstances of developing countries, whose economies heavily depend on income or consumption of fossil fuels and related energy-intensive products to achieve energy transitions. New MENA member countries like the UAE and Iran depend excessively on fossil fuels and find it difficult to reduce reliance on them in a short timeframe. The role of fossil fuels in the Gulf economy made their phasing out a contentious issue during COP28 held in the UAE that stressed on the equitable and inclusive energy transition.[xii] The raising of this issue by the BRICS has the potential to attract more regional countries to attain membership with the forum.

The Gaza Crisis and JCPOA

The second segment of the declaration dealing with regional and global stability focuses on the situation in the Middle East and Africa. BRICS’ emphasis on respect for international humanitarian law and the peaceful resolution of disputes through diplomacy and dialogue is deeply appreciated by the new members. They look at the BRICS forum as a platform for voicing humanitarian concerns in the occupied Palestinian territory, stressing the need for a permanent ceasefire in Gaza, throwing light on the alarming situation in Lebanon and emphasising the territorial integrity of Syria. The declaration denounces the April 2024 attack on Iranian diplomats in Syria and stresses the implementation of the JCPOA. Support for JCPOA at such an eminent forum is important for Iran, especially with Donald Trump set to come to power after winning the 2024 US Presidential elections. Under the first term of the Trump government, the US withdrew from the JCPOA, and despite speculations of improvement on this front under the Biden rule, much remains to be achieved. 

Local Currency 

The Kazan Declaration also supports the role of the New Development Bank and the BRICS Interbank Cooperation Mechanism (ICM) in expanding local currency financing and welcomes the use of local currencies in financial transactions between BRICS countries and their respective trading partners. It encourages the strengthening of correspondent banking networks within BRICS and enables settlements in local currencies in line with the BRICS Cross-Border Payments Initiative (BCBPI). The use of local currencies is important for Iran, whose economy has been under sanctions for decades. It had proposed a common currency connecting the financial systems of all BRICS nations to facilitate smooth cross-border economic transactions and promote financial integration among member states.[xiii] Iran and Russia have already linked their national payment systems via their respective central banks, and Iran suggested Russia expand this mechanism to the BRICS countries. The Russian Deputy Foreign Minister also clarified that Russia would look into how to enhance the use of local currencies, payment instruments and platforms among BRICS members.[xiv]

Conclusion 

BRICS has emerged as an important forum for EMDCs looking for an alternative to Western dominance in multilateral groupings like the World Bank, Group of Seven (G7) and the United Nations Security Council. For Middle East countries, BRICS is a forum with significant economic and democratic dominance, representing more than a quarter of the global economy and half the world population. On one hand, the new members are helping to expand and strengthen the forum, while on the other, BRICS is a coveted platform for these countries. The Kazan Declaration has suitably addressed the concerns of the Middle East new members, reflecting their acceptance in the grouping and the possibility of more regional countries joining the forum and a stable and a growing future for BRICS in the coming years.

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*Dr Lakshmi Priya, Research Fellow, Indian Council of World Affairs, New Delhi.
Disclaimer: The views expressed are personal.

Endnotes

[i] Kazan Declaration: “Strengthening Multilateralism For Just Global Development And Security”, Ministry of External Affairs, Government of India, October 23, 2024, available at https://www.mea.gov.in/bilateral-documents.htm?dtl/38450/Kazan+Declaration++Strengthening+Multilateralism+For+Just+Global++Development+And+Security accessed on November 5, 2024.

[ii] Lakshmi Priya, Iranian Approach-II: Pivot to Asia and the Global South, Indian Council of World Affairs, December 07, 2023, available at /show_content.php?lang=1&level=3&ls_id=10239&lid=6525 accessed on November 05, 2024.

[iii] Egypt calls on WTO to adopt development issues in developing countries, State Information Service, Government of Egypt, June 1, 2024, available at https://sis.gov.eg/Story/193090/Egypt-calls-on-WTO-to-adopt-development-issues-in-developing-countries?lang=en-us accessed on November 05, 2024.

[iv]Dispute Settlement: The Disputes, Dispute by Member, World Trade Organisation, available at https://www.wto.org/english/tratop_e/dispu_e/dispu_by_country_e.htm accessed on November 05, 2024.

[v] Qatar suspends WTO dispute with United Arab Emirates, Ahram Online, January 19, 2021, available at https://english.ahram.org.eg/NewsParis/399166.aspx accessed on November 06, 2024.

[vi] Iran condemns “illegal, unjustified” US sanctions on oil industry, VOA News, October 13, 2024, available at https://www.voanews.com/a/iran-condemns-illegal-unjustified-us-sanctions-on-oil-industry/7820962.html accessed on November 06, 2024.

[vii] Iran: seven individuals and seven entities sanctioned in response to Iran’s missile transfer to Russia, European Council, October 14, 2024, available at https://www.consilium.europa.eu/en/press/press-releases/2024/10/14/iran-seven-individuals-and-seven-entities-sanctioned-in-response-to-iran-s-missile-transfer-to-russia/ accessed on November 06, 2024.

[viii] Iranian president makes 5 proposals at BRICS summit in Russia, Islamic Republic News Agency, October 23, 2024, available at https://en.irna.ir/news/85637266/Iranian-president-makes-5-proposals-at-BRICS-summit-in-Russia accessed on November 07, 2024.

[ix] Hassan Abulenein, How to close sustainable development gaps across the Middle East and North Africa, World Economic Forum, September 23, 2024, available at https://www.weforum.org/stories/2024/09/mena-middle-east-north-africa-progress-sdg-sustainable-development-goals/#:~:text=In%20the%20Middle%20East%20and,Social%20Commission%20for%20Western%20Asia. Accessed on November 07, 2024.

[x] UN SDG goals: Report reveals that Arab countries’ progress vary widely, Zawya, March 31, 2022, available at https://www.zawya.com/en/economy/gcc/un-sdg-goals-report-reveals-that-arab-countries-progress-vary-widely-qxtp8fl7 accessed on November 08, 2024.

[xi] 6 Arab countries achieve 60 percent of UN SDGs, WAM Emirates News Agency, March 30, 2022, available at https://www.wam.ae/en/details/1395303035403 accessed on November 08, 2024.

[xii] Aisha Al Sarihi, COP28 controversy and the challenge of energy transition in the Gulf, December 18, 2023, available at https://www.chathamhouse.org/2023/12/cop28-controversy-and-challenge-energy-transition-gulf accessed on November 11, 2024.

[xiii] F M Shakeel, Iran's plan to establish BRICS-wide currency could change global trade dynamics, Al Mayadeen, July 20, 2024, available at https://english.almayadeen.net/articles/opinion/iran-s-plan-to-establish-brics-wide-currency-could-change-gl accessed on November 11, 2024.

[xiv] New BRICS member Iran calls for digital currency systems this year, Ledger Insights, January 30, 2024, available at https://www.ledgerinsights.com/brics-iran-digital-currency-systems-this-year/ accessed on November 11, 2024.