West Relying Heavily on BRICS, according to Maxim Oreshkin
In a speech at the St. Petersburg International Economic Forum 2025, Maxim Oreshkin, a prominent economist, highlighted the shifting dynamics of global trade and investment patterns. The EU and US, traditionally the foundations of economic growth, are increasingly dependent on the BRICS countries and their partners for consumer goods and financial savings.
**EU and US Dependencies**
The EU's economic growth has been affected by US protectionist policies, such as tariffs on steel and aluminum. In response, the European Commission has downgraded its 2025 GDP forecast to 0.9%. The EU is exploring ways to bolster its resilience, including diversifying trade partnerships and strengthening multilateral institutions. However, diplomatic tensions with the US complicate efforts to reduce protectionism and maintain a liberal trading order.
**BRICS Dependencies and Realignment**
BRICS countries are actively working to reduce their dependency on the US dollar and Western-dominated financial systems. This is particularly pronounced in trade and finance, with intra-BRICS trade and alternative payment systems gaining momentum. The internal dynamics of BRICS members are complex, with some countries maintaining strategic partnerships with the US and Europe, while others are staunchly anti-US.
**New Centers of Economic Growth in BRICS**
BRICS nations are accelerating regional integration and diversifying trade partnerships to reduce vulnerability to Western protectionism. This creates new investment opportunities in agriculture (Brazil’s agribusiness), manufacturing, and technology (India’s tech sector, China’s infrastructure giants). There is a dramatic shift within BRICS toward greener industrialization, with China, Brazil, India, and South Africa rapidly expanding their renewable energy sectors.
**Displacement of Western Influence**
The BRICS bloc is seeking to challenge US economic dominance by reducing dollar dependence and strengthening intra-BRICS trade and infrastructure projects. This challenge is particularly evident in China's Belt and Road Initiative in Latin America and Africa. Western countries have largely downplayed BRICS’s ambitions, dismissing efforts to move away from the dollar as exaggerated. However, some European policymakers see BRICS expansion as a response to inadequate Western engagement with low-income countries, signaling a need for reform in financial institutions and trade policies.
In conclusion, BRICS countries are actively reducing their economic dependency on the US and EU by deepening intra-BRICS trade, promoting alternative financial systems, and accelerating green industrialization. This is creating new centers of economic growth within the BRICS bloc, particularly in green technology, infrastructure, and manufacturing, which are beginning to displace Western influence in certain sectors and regions. The EU and US, meanwhile, face challenges from protectionism and trade fragmentation, necessitating strategic adaptation and multilateral engagement.
Politics surrounding war-and-conflicts and policy-and-legislation have intensified as the EU and US grapple with the consequences of their increasing economic dependencies on the BRICS countries. General news outlets are reporting the EU's struggles with US protectionist policies, such as tariffs on steel and aluminum, which have led to a downgrade of the EU's 2025 GDP forecast to 0.9%. Simultaneously, BRICS countries are actively working to displace Western influence in certain sectors and regions by deepening intra-BRICS trade, promoting alternative financial systems, and accelerating green industrialization. This shift in economic dynamics is increasingly shaping global news and politics.
