Putin Proposes BRICS Insurance Mechanism, Grain Market

Russian President Vladimir Putin on Sunday proposed the creation of a BRICS insurance mechanism and a collaborative grain market, calling on member countries to adopt a comprehensive approach to tackling growing global challenges.

Speaking at the concluding session of the 18th BRICS Summit in New Delhi, Putin said the proposed initiatives could strengthen economic cooperation among BRICS members and countries of the Global South.

“We have some promising initiatives going forward, 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,” Putin said.

Putin's proposal comes as Russia continues to face extensive sanctions from Western countries over its war in Ukraine. The G7, European Union and the UK have imposed restrictions affecting Western insurance services for ships carrying Russian crude oil, particularly through the oil price-cap mechanism.

The Russian president said BRICS countries have developed independent channels for the movement of capital, labour and technology and suggested that these mechanisms could help the grouping withstand external economic pressure.

Putin Highlights NDB's Role

Putin also praised the performance of the New Development Bank (NDB), the multilateral development bank established by BRICS countries. He said the institution is currently handling projects worth around USD 140 billion.

He urged BRICS nations and the wider Global South to work together on improving global governance and addressing both traditional and emerging security challenges.

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

Putin further noted the growing international interest in BRICS, saying broad participation at the summit demonstrated the grouping's increasing global stature.

The proposed insurance mechanism and grain market could become important areas of future BRICS economic cooperation, particularly as member countries seek to expand trade and financial links outside traditional Western-led systems.