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Monday, July 27, 2015

Dmitry Medvedev: BRICS cooperation is good not only for the BRICS countries but also for the overall global economic stability

Payments in national currencies between the BRICS nations will enhance the influence of the five countries, which account for one half of the planet's population and 20 percent of the world GDP, Russian Prime Minister Dmitry Medvedev said in his interview with the Delo newspaper ahead of his visit to Slovenia.

Mr Medvedev said the July BRICS Summit in Ufa approved the measures enabling BRICS countries to use national currencies, in addition to the dollar, in mutual settlements. This step, the Russian Prime Minister believes, goes a long way in strengthening economic ties within BRICS.

"Why are we doing this? Primarily, to make sure that our countries are less affected by the monetary policies of the states that issue reserve currencies. This has special importance now as the risks related to high debt levels in advanced countries remain in place. Settlements in national currencies with our BRICS partners, China and India, are already on the rise," Mr Medvedev said.

The Prime Minister added that the BRICS nations are currently fine-tuning new institutions, the New Development Bank and the Contingent Reserve Arrangement. This will provide new opportunities for joint lending, and will help implement new economic and investment projects.

Mr Medvedev also stressed Russia's interest in stepping up economic ties with the BRICS countries. "We have yet to unlock the great cooperation potential we have. Of course, in a situation where some European markets are closed to us, it is natural that Russia will start looking the other way," he stressed.

The Russian Prime Minister added that the funds of the Contingent Reserve Arrangement will go towards strengthening global financial security, building on existing mechanisms in this respect. "Financial cooperation of this kind is beneficial for the BRICS countries, as well as for promoting economic stability around the world," Mr Medvedev concluded.