KAZAN, Russia – Although cross border payments within BRICS countries face challenges, Russian President Vladimir Putin stated on Thursday that there are no plans to establish a separate payment system. Instead, he emphasized that the existing infrastructure can handle these transactions effectively.

Trade payments between Russia and key partners like China and Turkey have encountered obstacles, particularly as banks face pressure from Western regulators to carefully examine transactions involving Russia. This scrutiny has caused delays, creating difficulties for Russian businesses and financial institutions.

Ahead of the summit, Russia proposed an alternative system for payments in BRICS national currencies, featuring a new messaging network and connections among national banks through the central banks of BRICS nations.

“This is a critical issue today. The problem of settlements is one of the main challenges,” Putin remarked during a press briefing at the conclusion of the summit.

The BRICS summit, hosted by Russia and involving Brazil, Russia, India, China, and South Africa, wrapped up on Thursday. Putin noted that Russia’s existing financial messaging system, along with similar systems operated by other BRICS countries’ central banks, could support transactions in national currencies among member states.

“At this stage, we aren’t creating a new joint system. What’s already in place is sufficient,” Putin stated.