BRICS leaders call for energy market stability to ensure energy security

BRICS leaders called for energy market stability and criticized tariffs, sanctions and carbon border adjustment mechanisms in a joint statement released July 6.

"We highlight the need to enhance energy security by ensuring energy market stability and maintaining undisrupted flows of energy from diverse sources," BRICS leaders said in a statement released after a summit in Rio de Janeiro.

BRICS members Russia, Iran and the UAE have seen risks to their energy supplies to global markets increase significantly since Russia invaded Ukraine in February 2022 and the Israel-Hamas war broke out in October 2023.

Russia and Iran are also under punishing sanctions, which BRICS leaders criticized in the statement.

"We condemn the imposition of unilateral coercive measures that are contrary to international law, and reiterate that such measures, inter alia in the form of unilateral economic sanctions and secondary sanctions, have far-reaching negative implications for the human rights," the statement said.

Since early 2024, BRICS' energy footprint has expanded significantly. Key OPEC producers Iran and the UAE joined, and Saudi officials began to take part in meetings, although it has yet to confirm full membership.

BRICS accounts for 40% of global crude production and a similar level of global liquids demand if Saudi Arabia is included.

BRICS meetings provide a platform for these major producers to meet key consumers, including India and China.

Some leaders, including Russian President Vladimir Putin and his Chinese counterpart Xi Jinping, did not travel to the summit in Rio de Janeiro.

The group said it rejects measures such as carbon border adjustment mechanisms, which it described as "unilateral, punitive and discriminatory protectionist measures".

BRICS is also pushing for the development of alternatives to Western financial institutions.

Leaders said developing countries need to play a bigger role in the IMF and the World Bank.

They also called for deepening dialogue on the use of local currencies in trade and investment and on the interoperability of the financial systems of the BRICS countries.

BRICS includes Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, the United Arab Emirates, Ethiopia, Indonesia and Iran. Other oil producers, Nigeria, Kazakhstan and Malaysia, are BRICS partner countries.

Leaders also signed the BRICS a framework declaration on climate finance and approved a roadmap for BRICS Energy Cooperation 2025-2030 prepared by energy ministers in May that aims to increase its role in global energy, expand trade within the group and support energy security and transition.