Russia's Bold Move: A New Grain Exchange Among BRICS Nations

Russia proposes a new international grain exchange as part of a strategy to detach its trade from the U.S. dollar and combat Western sanctions. Backed by BRICS nations, the initiative aims to cover major commodities. Challenges lie in its implementation, requiring years of preparation.

Russia has unveiled an ambitious proposal to establish an international grain exchange, a move welcomed by BRICS nations at a summit in Kazan. This initiative is a part of Russia's broader strategy to decouple its trade from the U.S. dollar and counteract Western sanctions.

Supported by grains, legumes, and oilseed powerhouses like Brazil, India, China, and South Africa, the proposed exchange could eventually broaden its scope to other significant commodities. However, experts suggest it might take years of groundwork before the initiative becomes operational.

Eduard Zernin, from the Grain Exporters Union, emphasized the need for an international status to shield the exchange from potential sanctions. Skeptics, however, question the necessity of a new platform, citing existing ones' advantages in infrastructure and liquidity.

(With inputs from agencies.)