The New Development Bank (NDB), which was established by Brazil, Russia, India, China, and South Africa (BRICS), has joined the international condemnation of the invasion of Ukraine and has stopped doing business with Russia.
The move by BRICS bank follows suit of sanctions which have been imposed on Russia since the start of the invasion. The bank was set up back in 2013 when leaders from Brazil, Russia, India, China, and South Africa saw a need to have a new financial service provider. This would ensure the five countries to have financial independence and freedom from Western control.
The decision by the BRICS bank to stop providing services to Russia has come as a surprise and has sent shockwaves throughout the emerging markets. This is a serious blow to Putin as the establishment of this bank was meant to give the five countries leverage in times of crisis.
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The bank announced this decision without mention of the invasion of Ukraine. The statement by the BRICS bank reads, “iIn light of unfolding uncertainties and restrictions, NDB has put new transactions in Russia on hold.” None of the Russian board members have responded to the move which was taken by the BRICS bank.
South Africa has invested R25.5 billion into the BRICS bank to date. The announcement by NDB to stop doing business with Russia comes after card payment giants Visa and Mastercard suspended operations in Russia on 9 March.
Source: Business Insider South Africa, Eyewitness News, The Citizen, image from Business Insider South Africa
