Venezuelan Foreign Minister Yvan Gil Pinto believes that the expansion of BRICS (Brazil, Russia, India, China, and South Africa) will bring together major energy producers and consumers, leading to a decrease in the dependence on the US dollar in global trade. In an interview with RIA Novosti, Pinto highlighted the inclusion of Saudi Arabia and Iran in this group of emerging economic powers, and expressed hopes that Venezuela will also join BRICS in the future.
According to Pinto, the inclusion of Saudi Arabia and Iran in BRICS would encompass over 80% of the world’s crude reserves and production. He emphasized that with China and India included, BRICS will also become the biggest energy consumer, making it an ideal alliance. Pinto sees this expansion as a pathway towards a more balanced world, reducing the dominance of the US dollar in international trade.
Starting next year, Saudi Arabia and Iran are expected to officially become full members of BRICS following the approval of their candidacies during last month’s leaders’ summit in South Africa. The objective of this expansion is to shift the global landscape away from institutions that are predominantly controlled by Western powers, which member states argue are subject to misuse by the United States and its allies.
Pinto expressed optimism about Venezuela’s potential swift inclusion in BRICS, given the support it has garnered. He believes that BRICS’ increasing influence in the oil trade could further contribute to the de-dollarization of trade in energy and industrial goods, such as technology produced in China and India. Pinto sees this as a positive step towards a more stable world, as he believes that the US dollar is currently being used as a weapon of subjugation against other countries. He believes that the emergence of a new pool of currencies in world trade will benefit the stability of all nations.
Venezuela, with the world’s largest oil reserves, faces challenges in the extraction and refining of its heavier hydrocarbon-based reserves. The United States has imposed a series of unilateral sanctions on Venezuela, mainly targeting its oil sector, in an effort to pressure President Nicolas Maduro’s government. These sanctions have also limited Venezuela’s access to US-based refineries.
In conclusion, the expansion of BRICS to include major oil producers and consumers such as Saudi Arabia and Iran, and potentially Venezuela in the future, holds the promise of reducing dependence on the US dollar in global trade. This expansion aims to create a more balanced world by shifting power away from institutions controlled by Western powers. The increasing influence of BRICS in the oil trade could contribute to the de-dollarization of trade in energy and industrial goods, leading to a more stable international economic system.