ADDIS ABABA, Ethiopia — In a significant move reflecting shifting geopolitical dynamics, Ethiopia and Russia have announced a series of initiatives aimed at strengthening bilateral relations and enhancing cooperation within the BRICS framework.
Ethiopia, which officially joined BRICS in January 2024, is now preparing to become the fourth African member of the BRICS New Development Bank (NDB), following South Africa, Egypt, and Algeria.
Ethiopian Ambassador to Brazil, Leulseged Tadese Abebe, confirmed the country’s candidacy for NDB membership, stating that joining the bank is a national priority aligned with Ethiopia’s goal of integrating into the BRICS economic systems .
The NDB, established in 2015 by the BRICS nations, aims to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies .
Ethiopia’s accession to the bank is expected to provide access to funding in local currencies, mitigating foreign exchange risks and supporting the country’s economic stability .
In addition to financial collaboration, Ethiopia and Russia are exploring the use of local currencies in bilateral trade, reducing reliance on the U.S. dollar.
This initiative aligns with the broader BRICS strategy to promote financial settlements in local currencies and develop an independent cross-border payment system, known as BRICS Pay .
Russian President Vladimir Putin has emphasized the importance of these developments, asserting that BRICS nations will drive global economic growth in the coming years.
He highlighted initiatives such as a joint cross-border payments system and a reinsurance company to enhance economic sovereignty among member states .
The deepening ties between Ethiopia and Russia, coupled with Ethiopia’s active participation in BRICS, signify a strategic shift towards a multipolar global order.
