Putin proposes BRICS insurance mechanism for grain trade

Russian President Vladimir Putin on Sunday proposed a new insurance mechanism and a collaborative grain market among BRICS countries, calling for a holistic approach to addressing global challenges and greater economic cooperation among nations of the Global South.

Addressing the concluding session of the 18th BRICS summit in New Delhi, Putin said the grouping had independent routes for the movement of capital, labour and technology and could operate despite external pressure.

“We have independent routes for moving capital, labour and technologies. In fact, we can operate regardless of outside pressure,” he said.

Putin said Russia had put forward proposals for an insurance mechanism and a grain market and invited other BRICS members to make use of the initiatives. He did not provide details on how either mechanism would operate.

“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,” he said.

The proposal for an insurance mechanism comes against the backdrop of Western sanctions on Russia over its war in Ukraine. The G7, European Union and UK have restricted Western companies from insuring ships carrying Russian crude unless the oil is sold at or below a specified price cap, affecting Russia’s crude oil exports.

Putin also praised the functioning of the New Development Bank (NDB), the multilateral development bank established by the BRICS countries, saying it was handling projects worth $140 billion.

Calling for a broader approach to global challenges, Putin said BRICS and Global South countries should address both the immediate effects and underlying causes of international problems.

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

He also called on Global South countries to work together on improving global governance and addressing both traditional and non-traditional security threats.

Putin said BRICS’ global standing was growing as the grouping pursued what he described as an independent course in dealing with international challenges.

“The broad participation in today's meeting confirms that international interest in BRICS continues to grow,” he said.

He added that countries were attracted to BRICS’ emphasis on collective problem-solving, international law and the principles of the UN Charter.

The Russian president also highlighted the participation of BRICS partner countries and other states and multilateral organisations in the summit, saying the format provided an opportunity for direct dialogue between full members and partners.

BRICS originally comprised Brazil, Russia, India, China and South Africa. It expanded in 2024 to include Egypt, Ethiopia, Iran, the UAE and Saudi Arabia, while Indonesia joined in 2025.

Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan and Vietnam became BRICS partner countries last year.

The grouping now comprises 11 full members and represents around 49.5 per cent of the global population, 40 per cent of global GDP and 26 per cent of global trade.