S.C.O. Thread:

SCO values Russia, China’s experience in tackling new challenges — secretary general

The experience of these states especially taken into account when dealing with international terrorism, eradication of transborder drug trafficking, etc

BEIJING, June 1. /TASS/. The experience of Russia and China in overcoming new global challenges is highly important to activate the efforts of the Shanghai Cooperation Organization (SCO) as a key platform of multilateral cooperation, SCO Secretary-General Vladimir Norov said on Tuesday.

"The colossal experience and the unquestionable authority of Moscow and Beijing in countering new threats and challenges is in very high demand when it comes to enriching the activity of our organization further," he said in a video address to the participants of the international conference "Russia and China: Cooperation in a New Era."

According to Norov, the political and diplomatic efforts of Russia and China helped the SCO become "one of the leading transnational organizations in Eurasia." He reminded that India and Pakistan joined the SCO with the support of Russia and China.

According to the SCO chief, the organization values the experience of Moscow and Beijing when resolving key issues, such as the fight against international terrorism, eradication of transborder drug trafficking, and "development of universal rules, principles, and norms of the states in the information sphere." Norov stressed that the joint knowledge and skillset of Russia and China would help "promote the SCO cooperation experience in the said sphere on UN platforms".

https://tass.com/world/1296661

Iran's admission to SCO depends on adoption of all documents — foreign ministry

Bakhtiyor Khakimov also mentioned that at the initial stage, Iran should join the fundamental documents such as the SCO Charter, Treaty on Long-term Good Neighborliness, Friendship and Cooperation, the Shanghai Convention on Combating Terrorism, Extremism and Separatism

MOSCOW, September 23. / TASS /. Iran needs to adopt all the Shanghai Cooperation Organization (SCO)’s fundamental documents in order to speed up its accession to the organization, Special Envoy of the Russian President for SCO Affairs Bakhtiyor Khakimov said at an online briefing on Thursday.

"The accession process is not a one-time step. The procedure stipulates that the first step will be preparing the memorandum of obligations of the SCO candidate state. The document will be drawn up first by the SCO countries, then during talks, it will be further developed by Iran. After that, the next step will be Iran’s accession to the documents signed by the SCO," the envoy noted.

Khakimov also mentioned that at the initial stage, Iran should join the fundamental documents such as the SCO Charter, Treaty on Long-term Good Neighborliness, Friendship and Cooperation, the Shanghai Convention on Combating Terrorism, Extremism and Separatism.

"Considering that all these documents are ratified, this process depends on domestic legislation and the requirements of the member states," the diplomat stated. "So, the pace of procedure can be very different, but the crucial thing is to work cohesively and remain interested. Whether the procedure will be speeded up or delayed, depends on how all modalities are coordinated."

On September 16-17, a meeting of the SCO Heads of State Council, led by Tajik President Emomali Rahmon, took place in Dushanbe. As a result of the summit, some 30 documents have been adopted, bringing multifaceted cooperation to a new level. The participants greenlighted the beginning of Iran’s admission to the SCO, while Egypt, Qatar and Saudi Arabia were granted a Dialogue Partner status.

https://tass.com/politics/1341593

As Mercouris observed in his latest video, you won't likely see Western leaders these days in such a cheerful mood when they're meeting up, in contrast to the smiles and relaxed postures here at the SCO summit in Samarkand

https://thecradle.co/Article/Columns/15771

‘Samarkand Spirit’ to be driven by ‘responsible powers’ Russia and China
The SCO summit of Asian power players delineated a road map for strengthening the multipolar world
By Pepe Escobar
September 16 2022


Amidst serious tremors in the world of geopolitics, it is so fitting that this year’s Shanghai Cooperation Organization (SCO) heads of state summit should have taken place in Samarkand – the ultimate Silk Road crossroads for 2,500 years.

When in 329 BC Alexander the Great reached the then Sogdian city of Marakanda, part of the Achaemenid empire, he was stunned: “Everything I have heard about Samarkand it’s true, except it is even more beautiful than I had imagined.”

Fast forward to an Op-Ed by Uzbekistan’s President Shavkat Mirziyoyev published ahead of the SCO summit, where he stresses how Samarkand now “can become a platform that is able to unite and reconcile states with various foreign policy priorities.”

After all, historically, the world from the point of view of the Silk Road landmark has always been “perceived as one and indivisible, not divided. This is the essence of a unique phenomenon – the ‘Samarkand spirit’.”

And here Mirziyoyev ties the “Samarkand Spirit” to the original SCO “Shanghai Spirit” established in early 2001, a few months before the events of September 11, when the world was forced into strife and endless war, almost overnight.

All these years, the culture of the SCO has been evolving in a distinctive Chinese way. Initially, the Shanghai Five were focused on fighting terrorism – months before the US war of terror (italics mine) metastasized from Afghanistan to Iraq and beyond.

Over the years, the initial “three no’s” – no alliance, no confrontation, no targeting any third party – ended up equipping a fast, hybrid vehicle whose ‘four wheels’ are ‘politics, security, economy, and humanities,’ complete with a Global Development Initiative, all of which contrast sharply with the priorities of a hegemonic, confrontational west.

Arguably the biggest takeaway of this week’s Samarkand summit is that Chinese President Xi Jinping presented China and Russia, together, as “responsible global powers” bent on securing the emergence of multipolarity, and refusing the arbitrary “order” imposed by the United States and its unipolar worldview.

Russian Foreign Minister Sergey Lavrov pronounced Xi’s bilateral conversation with President Vladimir Putin as “excellent.” Xi Jinping, previous to their meeting, and addressing Putin directly, had already stressed the common Russia-China objectives:

 “In the face of the colossal changes of our time on a global scale, unprecedented in history, we are ready with our Russian colleagues to set an example of a responsible world power and play a leading role in order to put such a rapidly changing world on the trajectory of sustainable and positive development.”

Later, in the preamble to the heads of state meeting, Xi went straight to the point: it is important to “prevent attempts by external forces to organize ‘color revolutions’ in the SCO countries.” Well, Europe wouldn’t be able to tell, because it has been color-revolutionized non-stop since 1945.

Putin, for his part, sent a message that will be ringing all across the Global South: “Fundamental transformations have been outlined in world politics and economics, and they are irreversible.” (italics mine)

Iran: it’s showtime

Iran was the guest star of the Samarkand show, officially embraced as the 9th member of the SCO. President Ebrahim Raisi, significantly, stressed before meeting Putin that “Iran does not recognize sanctions against Russia.” Their strategic partnership will be enhanced. On the business front, a hefty delegation comprising leaders of 80 large Russian companies will be visiting Tehran next week.

The increasing Russia-China-Iran interpolation – the three top drivers of Eurasia integration – scares the hell out of the usual suspects, who may be starting to grasp how the SCO represents, in the long run, a serious challenge to their geoeconomic game. So, as every grain of sand in every Heartland desert is already aware, the geopolitical pressure against the trio will increase exponentially.

And then there was the mega-crucial Samarkand trilateral: Russia-China-Mongolia. There were no official leaks, but this trio arguably discussed the Power of Siberia-2 gas pipeline – the interconnector to be built across Mongolia; and Mongolia’s enhanced role in a crucial Belt and Road Initiative (BRI) connectivity corridor, now that China is not using the Trans-Siberian route for exports to Europe because of sanctions.

Putin briefed Xi on all aspects of Russia’s Special Military Operation (SMO) in Ukraine, and arguably answered some really tough questions, many of them circulating wildly on the Chinese web for months now.

Which brings us to Putin’s presser at the end of the summit – with virtually all questions predictably revolving around the military theater in Ukraine.

The key takeaway from the Russian president: “There are no changes on the SMO plan. The main tasks are being implemented.” On peace prospects, it is Ukraine that “is not ready to talk to Russia.” And overall, “it is regrettable that the west had the idea to use Ukraine to try to collapse Russia.”

On the fertilizer soap opera, Putin remarked, “food supply, energy supply, they (the west) created these problems, and now are trying to resolve them at the expense of someone else” – meaning the poorest nations. “European countries are former colonial powers and they still have this paradigm of colonial philosophy. The time has come to change their behavior, to become more civilized.”

On his meeting with Xi Jinping: “It was just a regular meeting, it’s been quite some time we haven’t had a meeting face to face.” They talked about how to “expand trade turnover” and circumvent the “trade wars caused by our so-called partners,” with “expansion of settlements in national currencies not progressing as fast as we want.”

Strenghtening multipolarity

Putin’s bilateral with India’s Prime Minister Narendra Modi could not have been more cordial – on a “very special friendship” register – with Modi calling for serious solutions to the food and fuel crises, actually addressing the west. Meanwhile, the State Bank of India will be opening special rupee accounts to handle Russia-related trade.

This is Xi’s first foreign trip since the Covid pandemic. He could do it because he’s totally confident of being awarded a third term during the Communist Party Congress next month in Beijing. Xi now controls and/or has allies placed in at least 90 percent of the Politburo.

The other serious reason was to recharge the appeal of BRI in close connection to the SCO. China’s ambitious BRI project was officially launched by Xi in Astana (now Nur-Sultan) nine years ago. It will remain the overarching Chinese foreign policy concept for decades ahead.

BRI’s emphasis on trade and connectivity ties in with the SCO’s evolving multilateral cooperation mechanisms, congregating nations focusing on economic development independent from the hazy, hegemonic “rules-based order.” Even India under Modi is having second thoughts about relying on western blocs, where New Delhi is at best a neo-colonized “partner.”

So Xi and Putin, in Samarkand, for all practical purposes delineated a road map for strengthening multipolarity – as stressed by the final  Samarkand declaration  signed by all SCO members.

The Kazakh puzzle

There will be bumps on the road aplenty. It’s no accident that Xi started his trip in Kazakhstan – China’s mega-strategic western rear, sharing a very long border with Xinjiang. The tri-border at the dry port of Khorgos – for lorries, buses and trains, separately – is quite something, an absolutely key BRI node.

The administration of President Kassym-Jomart Tokayev in Nur-Sultan (soon to be re-named Astana again) is quite tricky, swinging between eastern and western political orientations, and infiltrated by Americans as much as during the era of predecessor Nursultan Nazarbayev, Kazakhstan’s first post-USSR president.

Earlier this month, for instance, Nur-Sultan, in partnership with Ankara and British Petroleum (BP) – which virtually rules Azerbaijan – agreed to increase the volume of oil on the Baku-Tblisi-Ceyhan (BTC) pipeline to up to 4 million tons a month by the end of this year. Chevron and ExxonMobil, very active in Kazakhstan, are part of the deal.

The avowed agenda of the usual suspects is to “ultimately disconnect the economies of Central Asian countries from the Russian economy.” As Kazakhstan is a member not only of the Russian-led Eurasia Economic Union (EAEU), but also the BRI, it is fair to assume that Xi – as well as Putin – discussed some pretty serious issues with Tokayev, told him to grasp which way the wind is blowing, and advised him to keep the internal political situation under control (see the aborted coup in January, when Tokayev was de facto saved by the Russian-led Collective Security Treaty Organization [CSTO]).

There’s no question Central Asia, historically known as a “box of gems” at the center of the Heartland, striding the Ancient Silk Roads and blessed with immense natural wealth – fossil fuels, rare earth metals, fertile agrarian lands – will be used by the usual suspects as a Pandora’s box, releasing all manner of toxic tricks against legitimate Eurasian integration.

That’s in sharp contrast with West Asia, where Iran in the SCO will turbo-charge its key role of crossroads connectivity between Eurasia and Africa, in connection with the BRI and the International North-South Transportation Corridor (INSTC).

So it’s no wonder that the UAE, Bahrain and Kuwait, all in West Asia, do recognize which way the wind is blowing. The three Persian Gulf states received official SCO ‘partner status’ in Samarkand, alongside the Maldives and Myanmar.

A cohesion of goals

Samarkand also gave an extra impulse to integration along the Russian-conceptualized Greater Eurasia Partnership  – which includes the Eurasian Economic Union (EAEU) – and that, just two weeks after the game-changing Eastern Economic Forum (EEF) held in Vladivostok, on Russia’s strategic Pacific coast.

Moscow’s priority at the EAEU is to implement a union-state with Belarus (which looks bound to become a new SCO member before 2024), side-by-side with closer integration with the BRI. Serbia, Singapore and Iran have trade agreements with the EAEU too.

The Greater Eurasian Partnership was proposed by Putin in 2015 – and it’s getting sharper as the EAEU commission, led by Sergey Glazyev, actively designs a new financial system, based on gold and natural resources and counter-acting the Bretton Woods system. Once the new framework is ready to be tested, the key disseminator is likely to be the SCO.

So here we see in play the full cohesion of goals – and the interaction mechanisms – deployed by the Greater Eurasia Partnership, BRI, EAEU, SCO, BRICS+ and the INSTC. It’s a titanic struggle to unite all these organizations and take into account the geoeconomic priorities of each member and associate partner, but that’s exactly what’s happening, at breakneck speed.

In this connectivity feast, practical imperatives range from fighting local bottlenecks to setting up complex multi-party corridors – from the Caucasus to Central Asia, from Iran to India, everything discussed in multiple roundtables.

Successes are already notable: from Russia and Iran introducing direct settlements in rubles and rials, to Russia and China increasing their trade in rubles and yuan to 20 percent – and counting. An Eastern Commodity Exchange may be soon established in Vladivostok to facilitate trade in futures and derivatives with the Asia-Pacific.

China is the undisputed primary creditor/investor in infrastructure across Central Asia. Beijing’s priorities may be importing gas from Turkmenistan and Uzbekistan and oil from Kazakhstan, but connectivity is not far behind.

The $5 billion construction of the 600 km-long Pakistan-Afghanistan-Uzbekistan (Pakafuz) railway will deliver cargo from Central Asia to the Indian Ocean in only three days instead of 30. And that railway will be linked to Kazakhstan and the already in progress 4,380 km-long Chinese-built railway from Lanzhou to Tashkent, a BRI project.

Nur-Sultan is also interested in a Turkmenistan-Iran-Türkiye railway, which would connect its port of Aktau on the Caspian Sea with the Persian Gulf and the Mediterranean Sea.

Türkiye, meanwhile, still a SCO observer and constantly hedging its bets, slowly but surely is trying to strategically advance its own Pax Turcica, from technological development to defense cooperation, all that under a sort of politico-economic-security package. Turkish President Recep Tayyip Erdogan did discuss it in Samarkand with Putin, as the latter later announced that 25 percent of Russian gas bought by Ankara will be paid in rubles.    

Welcome to Great Game 2.0

Russia, even more than China, knows that the usual suspects are going for broke. In 2022 alone, there was a failed coup in Kazakhstan in January; troubles in Badakhshan, in Tajikistan, in May; troubles in Karakalpakstan in Uzbekistan in June; the non-stop border clashes between Tajikistan and Kyrgyzstan (both presidents, in Samarkand, at least agreed on a ceasefire and to remove troops from their borders).

And then there is recently-liberated Afghanistan – with no less than 11 provinces crisscrossed by ISIS-Khorasan and its Tajik and Uzbek associates. Thousands of would-be Heartland jihadis have made the trip to Idlib in Syria and then back to Afghanistan – ‘encouraged’ by the usual suspects, who will use every trick under the sun to harass and ‘isolate’ Russia from Central Asia.

So Russia and China should be ready to be involved in a sort of immensely complex, rolling Great Game 2.0 on steroids, with the US/NATO fighting united Eurasia and Turkiye in the middle.

On a brighter note, Samarkand proved that at least consensus exists among all the players at different institutional organizations that: technological sovereignty will determine sovereignty; and that regionalization – in this case Eurasian – is bound to replace US-ruled globalization.

These players also understand that the Mackinder and Spykman era is coming to a close – when Eurasia was ‘contained’ in a semi-disassembled shape so western maritime powers could exercise total domination, contrary to the national interests of Global South actors.

It’s now a completely different ball game. As much as the Greater Eurasia Partnership is fully supported by China, both favor the interconnection of BRI and EAEU projects, while the SCO shapes a common environment.

Yes, this is an Eurasian civilizational project for the 21st century and beyond. Under the aegis of the ‘Spirit of Samarkand.’
The views expressed in this article do not necessarily reflect those of The Cradle.

Putin reveals dedollarization progress in trade with China, 07.04.2023.

Over 80% of transactions between Moscow and Beijing are in rubles and yuan, the Russian president says.

Russia-China trade and economic cooperation is expanding, with over 80% of settlements between the two nations currently made in rubles and yuan, President Vladimir Putin has revealed.

The Russian leader was addressing a virtual summit of the Shanghai Cooperation Organization (SCO) on Tuesday via videolink from Moscow. The 23rd SCO summit is being chaired by Indian Prime Minister Narendra Modi.

The organization was founded in 2001 as an economic and security bloc by the presidents of Russia, China, the Kyrgyz Republic, Kazakhstan, Tajikistan, and Uzbekistan. India and Pakistan became permanent members in 2017.

According to Putin, the volume of trade between Russia and fellow SCO member states reached a record $263 billion in 2022. The figure was up 35% in the first four months of this year, he noted. The share of the ruble in Russia's settlements with the SCO countries exceeded 40%, Putin said.

Trade between Russia and China has continued to accelerate after hitting a historic high of $190.3 billion in annual terms in 2022. Exports and imports have surged at double-digit pace since the beginning of the year. According to customs data, bilateral trade soared to $93.8 billion in January-May, marking a 40.7% increase compared with a year ago. Russian Finance Minister Anton Siluanov recently said that bilateral trade is on track to surpass the target of $200 billion a year earlier than anticipated.

Economic ties have been bolstered by the mutual decision to conduct the majority of transactions in national currencies instead of the US dollar.

https://www.rt.com/business/579179-russia-china-trade-rubles-yuan/

Finance, Power, Integration: The SCO Welcomes a New 'Global Globe', by Pepe Escobar for The Cradle. 07.07.2023.

The 23rd summit of the heads of state of the Shanghai Cooperation Organization (SCO), held virtually in New Delhi, represented History in the making: three BRICS (Russia, India, China), plus Pakistan and four Central Asian “stans” (Kazakhstan, Kyrgyzstan, Uzbekistan, and Tajikistan), finally and formally, welcomed the Islamic Republic of Iran as a permanent member.

And next year will be Belarus’ turn, as confirmed by India’s First Deputy Foreign Minister Vinay Kvatra. Belarus and Mongolia took part in the 2023 summit as observers, and fiercely independent Turkmenistan, as a guest.

After years of US “maximum pressure,” Tehran may now finally get rid of the sanctions dementia and solidify its leading role in the ongoing process of Eurasia integration.

Arguably, the star of the show in New Delhi was Belarusian President Alexander Lukashenko, who has led his country since 1994.

Old Man Luka, unbeatable in the headline-stealing department, especially after his mediator role in the Prighozin saga, may have coined the definitive slogan of multipolarity. Forget the western-termed “golden billion” which in fact barely reaches 100 million; embrace now the “Global Globe” – with a firm focus on the Global South.

As the clincher, Lukashenko proposed total integration of the SCO and BRICS – which in their upcoming summit in South Africa will be heading the BRICS+ way. And it goes without saying, this integration also applies to the Eurasia Economic Union (EAEU).

The next step for the “Global Globe” – what the collective west dismissively qualifies as “the rest” – is to work on the complex coordination of several development banks and then the process to issue bonds linked to a new trading currency.

The main ideas and the basic template already exist. The new bonds will be a real safe heaven compared to the US dollar and US Treasuries, and will imply accelerated de-dollarization. Capital used to purchase those bonds should be used to finance trade and sustainable development, in what will be a certified, Chinese-style “win-win.”

A converging geoeconomic focus

The SCO declaration made it clear that the expanding multilateral body is “not directed against other states and international organizations.” On the contrary, it is “open to broad cooperation with them in accordance with the purposes and principles of the UN Charter, the SCO Charter and international law, based on consideration of mutual interests.”

The heart of the matter is of course the drive towards a fair multipolar world order – the polar opposite of the Hegemon-imposed “rules-based international order.” And the three key nodes are mutual security; trade in local currencies, and eventually, de-dollarization.

It’s quite enlightening to outline the converging focus, expressed by most leaders, during the New Delhi summit.

India’s Prime Minister Modi stated in his keynote address that the SCO will be as important as the UN. Translation: a toothless UN controlled by the Hegemon may end up being sidelined by a real “Global Globe” organization.

In parallel to Modi praising the key role of Iran in the development of the International North South Transportation Corridor (INSTC), Iranian President Ebrahim Raisi firmly supported SCO trade in national currencies to decisively break the US dollar’s hegemony.

Chinese President Xi Jinping, for his part, was adamant: China is all in favor to sideline the US dollar, stand firm against all forms of color revolutions, and fight against unilateral economic sanctions.

Russian President Vladimir Putin once again stressed how “external forces have put Russia’s security at threat by unleashing hybrid war against Russia and Russians in Ukraine.”

Pragmatically, Putin expects trade within the SCO, using national currencies, to grow – 80 percent of Russia’s trade is now in rubles and yuan – plus a renewed cooperation drive in banking, digitalization, high-tech, and agriculture.

Kyrgyz President Sadyr Japarov also stressed mutual settlements in national currencies, plus a crucial move: the setting up of a SCO development bank and development fund, quite similar to the BRICS’s New Development Bank (NDB).

President Kassym-Jomart Tokayev of Kazakhstan, which will exercise the SCO presidency in 2024, also supported a common investment fund, plus the configuration of a network of partners of major strategic ports connected to China’s BRI as well as the Astana-based Trans-Caspian International Transport Route, linking Southeast Asia, China, Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and Europe.

Of course all SCO members agreed that no Eurasia integration is possible without stabilizing Afghanistan – in fact linking Kabul geoeconomically with both BRI and the INSTC. But that’s another long, twisting story entirely.

Strategic connectivity rules

Now compare all that action in New Delhi with what happened in Tianjin a few days before, in late June: the World Economic Forum (WEF) event known as the “summer Davos”, held for the first time after the Covid-19 pandemic.

Chinese Premier Li Qiang’s critique of the new US/EU “de-risking” slogan may have been predictably sharp. What was way more intriguing was a BRI panel discussion titled “The Future of the Belt and Road Initiative.”

In a nutshell, that was some sort of “green” apotheosis. Liang Linchong, from the National Development and Reform Commission’s (NDRC) Department of Regional Opening-Up, which is essential to promote BRI, detailed several clean energy projects, for instance, in key BRI nodes Kazakhstan and Pakistan.

Africa was also prominently featured. Sekai Nzenza, Zimbabwe’s Minister of Industry and Commerce, is very much in favor of BRI projects increasing trade “and bringing the latest technology” within Africa and globally.

Beijing will revive the Belt and Road Forum later this year. There are huge expectations across the “Global Globe.”

Liang Linchong did go for a breakdown of what lies ahead: “Hard connectivity” (that means infrastructure building), “soft connectivity” (emphasis on skills, technologies and standards), and “connection of hearts,” which translates into the notorious Chinese concept of “people to people exchanges.”

So what the “Global Globe” should expect, according to Liang, is a surge of “small is beautiful” projects, very pragmatic. That ties up with the new focus by both Chinese banks and companies: Very large infrastructure projects around the world may be problematic for the time being, as China concentrates on the internal market and regimenting every front to fight the Hegemon’s multiple Hybrid Wars.

Strategic connectivity though won’t be affected.

Here is a prime example. Two crucial China industrial nodes – the Guangdong-Hong Kong-Macau Greater Bay Area, and the Beijing-Tianjin-Hebei cluster – launched their first China-Kyrgyzstan-Uzbekistan (CKU) international multimodal freight trains on the same day of the SCO summit in New Delhi.

This is classic BRI: Top connectivity, using the containerized “railway-road” multimodal system. The INSTC will be using the same system for trade between Russia, the Caspian, Iran and then by sea to India.

On the CKU, cargo reaches Xinjiang by railway, then goes on the road via the Irkeshtam border, passes through Kyrgyzstan and arrives in Uzbekistan. The whole journey saves nearly five days in transit time. The next step is to build the China-Kyrgyzstan-Uzbekistan railway: construction starts in late 2023.

BRI is making proverbial inroads in Africa. For instance, last month the China Aerospace Science and Technology Corporation (CASC) handed over a prototype satellite co-developed with Egypt to Cairo’s Space City. Egypt is now the first African nation capable of satellite assembling, integration, and testing. Cairo hails it as a prime example of sustainable development.

That’s also the first time Beijing assembles and tests a satellite overseas. Once again, classic BRI: “Consultation, Cooperation and Shared Benefits,” as defined by CASC.

And don’t forget the new Egyptian capital: An ultra-modern satellite of Cairo built literally from scratch in the desert for $50 billion, financed by bonds and – what else – Chinese capital.

The long and winding de-dollarization road

All this frantic activity correlates with the key dossier to be treated by BRICS+: De-dollarization.

India’s External Affairs Minister Jaishankar has confirmed there will be no new BRICS currency – for now. The emphasis is on increasing trade in national currencies.

When it comes to BRICS heavyweight Russia, the emphasis for now is to drive commodity prices higher for the benefit of the Russian ruble.

Diplomatic sources confirm that the unspoken agreement among BRICS sherpas – who this week are preparing the guidelines for BRICS+ to be discussed at the South Africa summit next month – is to hasten the fiat dollar’s meltdown: The Financing of US trade and budget deficits would become impossible at current interest rates.

The question is how to hasten it imperceptibly.

Putin’s trademark strategy is to always let the collective west embark in all sorts of strategic mistakes without direct Russian intervention. So what happens next in the battlefield in Donbass – NATO’s larger than life humiliation – will be a crucial factor in the de-dollarization front. The Chinese, for their part, worry about a collapsed dollar rebound on China’s manufacturing base.

The road map ahead suggests a new trade settlement currency first designed at the EAEU, supervised by the Eurasia Economic Commission’s head of macroeconomics Sergey Glazyev. That would lead to a wider BRICS and SCO deployment. But first the EAEU needs to get China on board. That was one of the key issues recently discussed by Glazyev, in person, in Beijing.

So the Holy Grail is a new supranational trade currency for BRICS, SCO, and EAEU. And it’s essential that its reserve status does not allow overriding power to one nation, as it happens with the US dollar.

The only practical means of tying the new trade currency to a basket of multiple commodities – not to mention a basket of national interests – would be through gold.

Imagine all that being discussed in depth by that interminable queue for BRICS membership. As it stands, at least 31 nations have entered formal applications or expressed interest in joining an upgraded BRICS+.

The interconnections are fascinating. Apart from Iran and Pakistan, the only full SCO members that are not BRICS members are four Central Asian “stans,” which already happen to be EAEU members. Iran is bound to become a member of BRICS+. No less than nine nations among SCO’s observers or dialogue partners are among BRICS applicants.

Lukashenko called it: The merging of BRICS and SCO seems virtually inevitable.

For the top twin drivers of both organizations – the Russia-China strategic partnership – this merger will represent the ultimate multilateral institution, based on real free and fair trade, capable of dwarfing both the US and the EU and extending well beyond Eurasia to the “Global Globe.”

German industry/business circles already seem to have seen the writing on the wall, as well as some of their French counterparts, which notably include France’s President Emmanuel Macron. The trend is towards an EU schism – and even more Eurasian power.

A BRICS-SCO trade bloc will make western sanctions absolutely meaningless. It will affirm total independence from the US dollar, offer an array of financial alternatives to SWIFT, and encourage close military and intel cooperation against serial black ops by the Five Eyes, part of the ongoing Hybrid Wars.

In terms of peaceful development, West Asia has shown the way. The minute Saudi Arabia sided with China and Russia – and is now a candidate to both BRICS and SCO membership – there was a new game in town.

Golden Ruble 3.0?

As it stands, there’s huge potential for a gold-backed ruble. If and when it hits the road, that will be a revival of the gold-backing in the USSR between 1944 and 1961.

Glazyev has crucially observed that Russia’s trade surplus with SCO members has allowed Russian companies to pay off external debts and replace them with borrowing in rubles.

In parallel, Russia is increasingly using the yuan for international settlements. Further on down the road, key “Global Globe” players – China, Iran, Turkey, UAE – will be interested in payment in non-sanctioned gold instead of local currencies. That will pave the way for a BRICS-SCO trade settlement currency tied to gold.

After all, nothing beats gold when it comes to fighting collective western sanctions, pricing oil, gas, food, fertilizers, metals, minerals. Glazyev already laid down the law: Russia’s got to go for Golden Ruble 3.0.

The time is fast approaching for Russia to create the perfect storm to deliver a massive blow to the US dollar. This is what’s being discussed behind the scenes at the SCO, EAEU, and some BRICS sessions, and this is what’s driving the Atlanticist elites livid.

The “imperceptible” way for Russia to make it happen is to let markets drive up the prices of nearly all Russian commodity exports. Neutrals all across the “Global Globe” will interpret it as a natural “market response” to the collective west’s cognitive dissonant geopolitical imperatives. Soaring energy and commodity prices will end up provoking a steep decline in the purchasing power of the US dollar.

So it’s no wonder that several leaders at the SCO summit were in favor to what amounts, in practice, to an expanded BRICS-SCO Central Bank. When the new BRICS-SCO-EAEU currency is finally adopted – of course it’s a long way away, perhaps in the early 2030s – it will be traded for physical gold by participating banks from SCO, BRICS, and EAU member-nations.

All of the above should be interpreted as the sketch of a possible, realistic path to real multipolarity. It has nothing to do with the yuan as reserve currency, reproducing the existing rent-extracting racket to the profit of a minuscule plutocracy – complete with a massive military apparatus specialized in bullying the “Global Globe.”

A BRICS-SCO-EAEU union will be focused on building – and expanding – the physical, non-speculative economy based on infrastructure development, industrial capability, and tech sharing. Another world-system, now more than ever, is possible.

https://www.unz.com/pescobar/finance-power-integration-the-sco-welcomes-a-new-global-globe/

As usual, India again decides to sabotage China's Belt and Road initiative

US-oriented structures try to reformat security system in Asia-Pacific region

Russian Defense Minister Sergey Shoigu underlined that this is being done by strengthening "military-political structures such as QUAD, AUKUS and the US-Japan-Philippines triad"

ASTANA, April 26. /TASS/. US-oriented military and political structures in the Asia-Pacific region, such as QUAD and AUKUS, are trying to transform the security system in the region into a US-centric one, Russian Defense Minister Sergey Shoigu said.

"As for the Asia-Pacific region, here too we see systematic attempts to reformat the regional security system from ASEAN-centric to American-centric. This is being done by strengthening Washington-oriented military-political structures such as QUAD, AUKUS and the US-Japan-Philippines triad," Shoigu said at a meeting of SCO defense ministers in Astana.

According to the top Russian defense official, the "Taiwan factor" is being actively used to increase pressure on China.

https://tass.com/defense/1781033

SCO should unite against foreign attempts to trigger revolutions — Shoigu

"The main emphasis should be placed on the development of military contacts between the SCO and the CSTO,"the Russian defense minister said

ASTANA, April 26. /TASS/. The member-states of the Shanghai Cooperation Organization (SCO) should ensure the association's resistance to external destructive influences, including attempts to trigger color revolutions, Russian Defense Minister Sergey Shoigu has said.

"It is necessary to ensure the organization's resistance to attempts to undermine its cohesion and plots to provoke color revolutions and crises in the member states from outside. It is necessary to jointly resist the intention of our enemies to destroy the established long-standing ties among the SCO countries, to ensure optimal consideration of the national interests of each member state and to continue further rapprochement," Shoigu said, speaking at a meeting of SCO defense ministers on Friday.

He added that "in this context, it seems logical to steadily pair the potential of the organization with the capabilities of other international structures on our continent in the field of security."

"The main emphasis should be placed on the development of military contacts between the SCO and the CSTO," Shoigu said.

SCO as cornerstone of new multipolar system

The Russian defense minister pointed to another key task he sees in "strengthening the role of the SCO as one of the cornerstones of the new multipolar international system, as well as a model of interstate relations based on equality and mutual respect."

"The implementation of agreements reached by the heads of state of the organization's member states remains a key element of this work," Shoigu stressed.

"Military cooperation holds a special place in interstate relations on the SCO platform," he stated, noting that it was necessary to emphasize close cooperation by defense ministries and sustainable information exchange for timely response to terrorist and other possible threats.

"In this regard, joint operational and combat training activities are of particular importance," he said. "We need to expand the geographical scope and scenarios of joint exercises, strengthen their information coverage and improve the training of the forces involved. We are ready to share our experience and advanced methods of combat operations during these events.

Shoigu also suggested inviting "representatives of other regional associations, primarily the CSTO and CIS, as well as friendly countries" to participate in the SCO defense ministries' activities, especially in operational and combat training.

He stressed that the implementation of the proposals mentioned at the meeting "will ensure the steady onward development of the SCO and the maintenance of stability in the organization's space.

https://tass.com/politics/1781065

SCO expects Belarus to join the organization very soon — Shoigu

https://tass.com/defense/1781041

George1 wrote:SCO expects Belarus to join the organization very soon — Shoigu

https://tass.com/defense/1781041

Well possibly, but it should be only temporary.

I expect the 6 regions of Bielorussia, plus the Federal city of Minsk to join the Russian federation.

Maybe Alexander Lukashenko could temporarily take Medvedev's role as deputy head of Russia's security council, after stopping being the president of a semi independent state.

It should be organised properly, in order to avoid problems.