In this second article analysing what the 2024 BRICS Summit in Kazan, Russia, has in store, I shared comments with Tala Michel Issa for Arabian Business focusing on the outlook for the UAE-Russia economic and trade relations as the Emirates are joining the club for the first time as a full-fledged member.
“BRICS has to transform into this platform that proposes something very concrete and the UAE is coming at the perfect time because the UAE is at the forefront, is on the first line of many of those challenges.”
“The trade relationship has evolved significantly since Russia’s invasion of Ukraine in 2022, becoming increasingly concentrated in specific sectors. Gold in 2022 accounted for more than 66 per cent of Russian exports to the UAE. Diamonds accounting for more than 20 per cent”. “The UAE has also dramatically increased its imports of Russian oil derivatives for re-export to Asia and Africa.”
“However, this deepening economic relationship walks a fine line. Recent events, such as Abu Dhabi’s G42 being pressured to divest from Chinese AI companies under US pressure, highlight the challenges ahead.”
“The relationship faces immediate practical challenges too, particularly regarding trade routes. Recent conflicts have threatened crucial shipping lanes in the Red Sea and raised concerns about the Strait of Hormuz, pushing BRICS members to seek alternatives.”
Read the full article here.
Picture credits: Arabian Business
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