What Happened
- The US-Israel war on Iran, which began February 28, 2026, has exposed deep fault lines within BRICS, as the bloc failed to issue a unified response to an attack on one of its permanent members.
- Brazil, China, and Russia condemned the US-Israeli airstrikes on Iran, while India, Saudi Arabia, and the UAE either remained neutral or criticised Iranian missile strikes on Gulf states — fracturing the bloc's collective position.
- India, holding the BRICS chairmanship since December 2025, prioritised its own strategic interests — including proximity to the US-Israel axis and energy diversification — over any bloc solidarity with Iran.
- Analysts described BRICS as "missing in action" and said the bloc's inability to respond to an attack on a permanent member represents the most serious credibility blow in its history.
- The war revealed that BRICS expansion (from 5 to 10 members in 2024) introduced new contradictions — Gulf Arab states (Saudi Arabia, UAE, Egypt) have no interest in backing Tehran against Washington.
Static Topic Bridges
BRICS — Origins, Expansion, and Architecture
BRICS began as an investment concept coined by Goldman Sachs economist Jim O'Neill in 2001 (then "BRIC" — Brazil, Russia, India, China). The grouping formalised with the first BRIC summit in Yekaterinburg, Russia, in 2009. South Africa joined in 2010, creating the BRICS acronym. In 2024, the bloc expanded significantly to include Iran, Egypt, Ethiopia, Saudi Arabia, and UAE (with Argentina withdrawing its invitation).
- Founding members: Brazil, Russia, India, China, South Africa.
- 2024 new members (formally joining January 2024): Egypt, Ethiopia, Iran, Saudi Arabia, UAE. Argentina was invited but declined under President Milei.
- BRICS has no permanent secretariat, charter, or binding governance structure — it operates by consensus.
- Combined GDP: approximately 35-37% of global GDP (PPP basis); population: approximately 45% of the world.
- BRICS chairmanship rotates annually; India held chairmanship in 2021 and again from December 2025.
- New Development Bank (NDB): established 2015, HQ Shanghai, initial capitalisation $100 billion — BRICS's key institutional creation.
- Contingent Reserve Arrangement (CRA): $100 billion pool for balance of payments support among members.
Connection to this news: The expansion that was meant to strengthen BRICS has actually multiplied its internal contradictions — new member Iran is now at war with allies of other new members (Gulf states), while founding member India refuses to take Iran's side.
BRICS and De-Dollarisation Agenda
A core aspiration of BRICS has been to reduce dependence on the US dollar in international trade and finance — often described as "de-dollarisation." This includes proposals for a BRICS reserve currency or settlement currency, greater use of local currencies in bilateral trade, and alternative financial messaging systems to SWIFT.
- The dollar's role: approximately 58-60% of global foreign exchange reserves, 80%+ of global oil trade, and 40%+ of global payments are denominated in USD.
- Russia was excluded from SWIFT in 2022 following Ukraine sanctions — accelerating de-dollarisation discussions within BRICS.
- India-Russia trade in rupee-ruble: India has made significant bilateral trade in rupees with Russia for oil, though accumulation of un-spendable rupee surpluses with Russia has been a practical challenge.
- At the 2023 Johannesburg Summit, BRICS members discussed but did not formally endorse a common BRICS currency.
- The NDB uses a basket of currencies for some loans, but dollar remains dominant in global commodity pricing.
Connection to this news: The Iran war demonstrates that de-dollarisation aspirations cannot override individual member states' energy and strategic interests. India's priority is securing energy supply — even if that means accepting a US waiver for Russian oil — not bloc solidarity against US financial power.
India's Multi-Alignment Foreign Policy and BRICS
India's foreign policy is characterized by "multi-alignment" or "strategic autonomy" — cultivating relationships across competing power blocs simultaneously without formal alliance commitments. BRICS membership sits alongside India's Quad membership (with US, Japan, Australia), bilateral strategic partnerships with Russia, France, and Israel, and membership in the Shanghai Cooperation Organisation (SCO).
- India's stated BRICS priority: reform of multilateral institutions (UN Security Council, IMF, WTO) to give greater voice to the Global South, rather than anti-US posturing.
- India abstained on UNGA resolutions condemning Russia's invasion of Ukraine in 2022 — a similar calculated neutrality is reflected in the Iran war response.
- India's February 28 statement on the Iran crisis called for "restraint, dialogue, diplomacy, and respect for sovereignty" — applying no blame to either side.
- India's strategic interest: neither Iran's isolation (which removes a key oil supplier and connectivity corridor) nor a US-China confrontation (which would force India to choose sides explicitly).
- The India-Middle East-Europe Economic Corridor (IMEC) — announced at G20 India 2023 — has been rendered non-operational by the war, illustrating the material costs of regional instability.
Connection to this news: India's BRICS chairmanship position during the Iran crisis exemplifies multi-alignment — refusing to condemn US-Israeli strikes while also not endorsing them, prioritising national energy and trade interests over bloc coherence.
Key Facts & Data
- BRICS concept coined by Goldman Sachs (Jim O'Neill) in 2001; first BRIC summit in Yekaterinburg, 2009.
- South Africa joined in 2010; 2024 expansion added Egypt, Ethiopia, Iran, Saudi Arabia, UAE.
- BRICS combined GDP (PPP): ~35-37% of global GDP; population: ~45% of global population.
- New Development Bank (NDB): established 2015, HQ Shanghai, initial capital $100 billion.
- Contingent Reserve Arrangement (CRA): $100 billion pool for balance of payments support.
- India holds BRICS chairmanship from December 2025.
- Around 40-50% of India's crude oil imports pass through the Strait of Hormuz; ~40% of China's oil supplies do too — both members face the same energy vulnerability but chose different diplomatic postures.
- IMEC (India-Middle East-Europe Economic Corridor): announced at G20 India 2023, passing through UAE and Saudi Arabia — now operationally suspended due to the war.