WEBVTT - Has The BRICS Summit Brought Russia and Africa Closer?

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Russia wants to show there is an alternative to a

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<v Speaker 2>world run on the West's terms.

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<v Speaker 3>The Bricks State stands united in their support for intensifying

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<v Speaker 3>cooperation in the global arena based on the key principles

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<v Speaker 3>of the UN Charter, and jointly strive to contribute in

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<v Speaker 3>every possible way to the formation of a fair, multipolar

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<v Speaker 3>world order with the decisive participation of the countries of

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<v Speaker 3>the Global South and East in the systems of international governance.

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<v Speaker 2>The Brick Summit in Kazan is Putin's attempt to show

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<v Speaker 2>that Russia is not alone. The Kremlin build it as

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<v Speaker 2>one of the largest scale foreign policy events ever, and

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<v Speaker 2>African countries are playing a key role.

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<v Speaker 4>Bricks is an inclusive formation, but has the ability to

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<v Speaker 4>change the trajectory of the Global South. To do this,

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<v Speaker 4>we must realize the food potential of our economic partnership

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<v Speaker 4>to ensure sustainable development for all and not just for some.

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<v Speaker 2>On this week's Next Africa Podcast, we'll ask what Russia

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<v Speaker 2>needs from Africa and what the region wants in return.

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<v Speaker 2>Is Russia an important ally or simply a way to

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<v Speaker 2>show the rest of the world at the West isn't

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<v Speaker 2>the only game in town. I'm Jennifer's Abasaja and this

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<v Speaker 2>is the Next Africa Podcast, bringing you one story each

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<v Speaker 2>week from the continent driving the future of global growth

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<v Speaker 2>with the context only Bloomberg can provide. Joining me to

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<v Speaker 2>discuss Russia's relationship with Africa this week our Bloomberg Senior

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<v Speaker 2>reporter Henry Meyer and stembile Sele, Bloomberg's Government and eco

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<v Speaker 2>reporter based here in Johannesburg. Hello to both of you.

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<v Speaker 2>Thanks for joining us on the podcast. Henry, let's just

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<v Speaker 2>start with you, Baby goes a background on BRICKS and

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<v Speaker 2>what exactly was on the agenda for the summit this week.

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<v Speaker 5>So, this is an organization which was founded about fifteen

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<v Speaker 5>years ago by Russia, China, India and Brazil, and then

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<v Speaker 5>it took in South Africa in twenty and ten and

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<v Speaker 5>became BRICKS. It's essentially an organization which includes developing countries

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<v Speaker 5>and seen by some of its members, particularly Russia and China,

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<v Speaker 5>as an alternative to the US led world order. This

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<v Speaker 5>is not a view which is widely shared by the

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<v Speaker 5>other members. And this meeting that took place in Russia

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<v Speaker 5>is the first time that the organization has met since

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<v Speaker 5>it expanded to take in four new members. Those members

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<v Speaker 5>are Ethiopia and Egypt, two new African countries, and Iran

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<v Speaker 5>and the United Arab Emirates. In terms of what was

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<v Speaker 5>on the agenda, obviously a part of their agenda is

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<v Speaker 5>trying to increase the role of developing countries, particularly in

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<v Speaker 5>the world's international financial architecture, develop economic ties between themselves

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<v Speaker 5>and reduce the use of the US dollar. And also

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<v Speaker 5>they are looking at the issue of whether they are

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<v Speaker 5>ready to expand further.

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<v Speaker 2>It's telling too, Henry, I mean the location of this

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<v Speaker 2>the backdrop of what's happening geopolitically. When you think about

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<v Speaker 2>a lot of those agenda items, What if anything do

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<v Speaker 2>we know did they achieve at the summit.

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<v Speaker 5>Well, the mere fact of the summit taking place at

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<v Speaker 5>all is certainly by Russia seen as a major achievement.

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<v Speaker 5>As you mentioned the geopolitical scenario, Russia is obviously under

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<v Speaker 5>unprecedented sanctions and the West is trying to isolate it

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<v Speaker 5>over its invasion of Ukraine. In total, more than thirty

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<v Speaker 5>leaders attended this meeting. This includes countries which want to join,

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<v Speaker 5>as well as the nine members. We don't have so

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<v Speaker 5>far any tangible results from the summit. We do believe, however,

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<v Speaker 5>that approximately a dozen countries will be invited to become

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<v Speaker 5>observer members so not full membership, but maybe it's a

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<v Speaker 5>halfway house.

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<v Speaker 2>And what's interesting to Henry about this, we have a

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<v Speaker 2>few Bloomberg Economics intelligence reports about how the expanding block

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<v Speaker 2>doesn't necessarily mean that all of these different countries are

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<v Speaker 2>going to be having the same relationship, right, the same

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<v Speaker 2>bilateral relationship. But if we just take one of those

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<v Speaker 2>China's relationship with South Africa. With Africa, we know a

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<v Speaker 2>lot of that has come with checkbooks, has been about infrastructure.

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<v Speaker 2>But when we think about Russia as the host of

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<v Speaker 2>this year's summit, what do we know about Russia's relations

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<v Speaker 2>with some of the other countries that are in the

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<v Speaker 2>BRUX membership.

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<v Speaker 5>If we so specifically about Africa, then obviously China's approaches,

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<v Speaker 5>as you mentioned, is quite different. It's much more based

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<v Speaker 5>on financial and economic ties. Obviously the level of trade,

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<v Speaker 5>it's very interesting the Russian trade with Africa is very small.

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<v Speaker 5>It's only twenty five billion dollars a year versus more

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<v Speaker 5>than two hundred and eighty billion for China and the

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<v Speaker 5>Russian approach, I would characterize it as developing ties with

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<v Speaker 5>Africa on the cheap, if you're like A lot of

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<v Speaker 5>it is to do with diplomatic benefits for African countries

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<v Speaker 5>and also security ties, and particularly with countries where military

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<v Speaker 5>rulers have taken over. This is the case in the

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<v Speaker 5>Sahel in Western Africa, and this is I think the

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<v Speaker 5>approach that Russia has yielded real benefits for them.

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<v Speaker 1>At the UN.

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<v Speaker 5>There have been African countries which have not backed votes

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<v Speaker 5>condemning Russia for its invasion of Ukraine, and it allowed

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<v Speaker 5>Russia also to counter the isolation that the West has

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<v Speaker 5>been trying to impose on it.

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<v Speaker 2>And one of those countries that have taken a bit

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<v Speaker 2>of a neutral stance is South Africa's Tambile, if you

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<v Speaker 2>can join in on this. Obviously, a key part of

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<v Speaker 2>the Bricks was the host last year for the summit.

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<v Speaker 2>How would you characterize South Africa's relationship with Russia right now?

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<v Speaker 6>I think it is from a foreign policy perspective, one

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<v Speaker 6>which in the first instance is historical, and that certainly

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<v Speaker 6>came into play what last year's Brick summits and the

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<v Speaker 6>negotiations around having the President of Russia Nott come unless

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<v Speaker 6>t be arrested on that warrant of arrest from international

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<v Speaker 6>criminal courts. But in terms of trade it is actually

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<v Speaker 6>very limited. A trade that happens between the two countries

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<v Speaker 6>are not significant in that sense. I think the approach

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<v Speaker 6>to Russia is similar to the approach of countries in

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<v Speaker 6>general for South Africa, which is, we are dealing from

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<v Speaker 6>an aspect of national interest, what can we get out

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<v Speaker 6>of this now? And South Africa has pushed really hard

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<v Speaker 6>to be seen as being part of the revival of

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<v Speaker 6>the so called non allied movement, where there is not

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<v Speaker 6>neutrality but a position which says we're not going to

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<v Speaker 6>get involved in every fact that you're involved with. Our

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<v Speaker 6>allegiance and should be tested in that way and we

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<v Speaker 6>should not be seen as taking.

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<v Speaker 1>The side or that sign.

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<v Speaker 6>We should be doing what we believe to be right,

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<v Speaker 6>what is compliant with the international rule of law, and

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<v Speaker 6>what is in our national interest economically and otherwise. And

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<v Speaker 6>so I think that's position. Even if you look at

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<v Speaker 6>the inputs that President rama Porta has been making.

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<v Speaker 1>He's been pushing that idea of this is where we're

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<v Speaker 1>at now.

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<v Speaker 6>In terms of this coalition government that we've got going,

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<v Speaker 6>and this is what we want to see in terms

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<v Speaker 6>of the international order, and that is very much a

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<v Speaker 6>form of multilateral institutions.

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<v Speaker 1>They need to be fair.

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<v Speaker 6>There needs to be a representation of the globe of

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<v Speaker 6>South at these forums and they need to be heard

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<v Speaker 6>in terms of what the interests saw and what the

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<v Speaker 6>priorities are of countries in that region. I think that's

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<v Speaker 6>the main push. We need to say, that's how we

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<v Speaker 6>are engaging, That's not Africa, what is in this for us?

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<v Speaker 1>And what is the structure of the international order?

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<v Speaker 2>In the stare and non aligned was the right word.

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<v Speaker 2>Thank you for using that stambula on the agenda this week.

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<v Speaker 2>There were plans to try to expand the Bricks Group.

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<v Speaker 2>We mentioned how last year that was part of the summit,

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<v Speaker 2>but South Africa has been pretty vocal in their own

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<v Speaker 2>stance in terms of expanding it out. Well, all the

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<v Speaker 2>Bricks countries really have been stimuli What is the resistance

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<v Speaker 2>to adding some of the countries that have been floated

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<v Speaker 2>into the Bricks block from South Africa?

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<v Speaker 6>So I think there's definitely a division work in Bricks

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<v Speaker 6>on a number of levels. It's not as clear cutter

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<v Speaker 6>as what the president of Russia, what have you believed?

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<v Speaker 6>This is not a huge moment where everyone is at

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<v Speaker 6>the table and they're all, you know, saying kumbaya, I'm

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<v Speaker 6>agreeing with each other.

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<v Speaker 1>There are some very real differences.

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<v Speaker 6>I mean, if you're looking at some of the divisions,

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<v Speaker 6>it might be along If you look at the founding

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<v Speaker 6>members Brazil, India and South Africa, they have a very

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<v Speaker 6>different worldview in general to Russia and China in terms

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<v Speaker 6>of some of the purchase that they have to masters.

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<v Speaker 6>And so they, for instance, are democratic countries. They are

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<v Speaker 6>not interested in bricks being a counter to the West.

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<v Speaker 6>They are interested simply an increasing representation in international order.

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<v Speaker 1>And so I think that's where there is a difference.

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<v Speaker 6>Russia at chime I might want to be using the

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<v Speaker 6>bricks flock to further their own interests, to further their

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<v Speaker 6>own placement in the world, to say, you know what,

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<v Speaker 6>we have brains that we have allies, and these three

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<v Speaker 6>countries in particular are saying, you know, this is more

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<v Speaker 6>complicated than that, and we can take a step back

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<v Speaker 6>and see what is it that you are actually wanting

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<v Speaker 6>to achieve.

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<v Speaker 2>Stick with us Henry and Stambilay when we come back,

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<v Speaker 2>we'll look at what impact Russia has already had on

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<v Speaker 2>the continent and what African leaders potentially want to get

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<v Speaker 2>out of this relationship. Welcome back today on the podcast,

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<v Speaker 2>we're discussing Russia's relationship with Africa that as the Bricks

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<v Speaker 2>Summit ends in Kazan, Henry talk to us maybe about

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<v Speaker 2>where Russia has had the most influence in Africa. Stambila

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<v Speaker 2>really laid out there a lot of the differing relationships

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<v Speaker 2>that members of the Block have had, but maybe talk

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<v Speaker 2>to us from the perspective of the Russian state.

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<v Speaker 5>Yes, the major Russian influence is in West Africa, in

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<v Speaker 5>Sahel region, where you have a big problem with Jahadda's violence,

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<v Speaker 5>and this has given Russia an opening to start providing

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<v Speaker 5>security services. This began in twenty eighteen in the Central

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<v Speaker 5>African Republic when Russian mercenaries arrived at the invitation of

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<v Speaker 5>the president. Three years later they started to work in

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<v Speaker 5>Mali and this now has now accelerated this year. In

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<v Speaker 5>both Burkina Fassa and Niger. You have a Russian military presence.

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<v Speaker 5>In addition to those countries, I would also mention a

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<v Speaker 5>couple of other countries where Russia does have.

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<v Speaker 1>A strong presence.

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<v Speaker 5>Libya also a military presence in the east of the

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<v Speaker 5>country where Russia is allied to the Eastern Bay strongman

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<v Speaker 5>Halifa Haftar. Sudan, Russia is supporting power military forces which

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<v Speaker 5>are fighting the military rulers in Hartu. And then you

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<v Speaker 5>have other countries like Zimbabwe and of course South Africa

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<v Speaker 5>where you have these historic links because of Soviet support

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<v Speaker 5>for liberation movements.

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<v Speaker 2>We're clearly seeing this sort of tug of war for

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<v Speaker 2>influence and for partnership to a certain extent on the continent.

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<v Speaker 1>I mean, Stembile, can you talk.

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<v Speaker 2>To us about maybe the perspective of African leaders And

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<v Speaker 2>I know you can't speak for all of them, but

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<v Speaker 2>what is the benefit for them to be mentioned non

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<v Speaker 2>alignment to look to countries like Russia, like China. Is

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<v Speaker 2>it just wanting to send that message that they are

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<v Speaker 2>open to any and all partners or have we heard

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<v Speaker 2>from them that there's something else at play here?

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<v Speaker 1>Yeah, so definitely don't speak for all of them, Thank

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<v Speaker 1>you for that.

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<v Speaker 6>But so Bloomberg Economy News had a really interesting piece

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<v Speaker 6>about this concept of geopolitical neutrality, how not picking side

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<v Speaker 6>is paying off for certain countries, and so previously it

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<v Speaker 6>would be so easy to say this country is allowed

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<v Speaker 6>at the side of the world, and so this is

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<v Speaker 6>how they'revoked certain things going forward. I think with the

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<v Speaker 6>Russian's invasion of Ukraine, that was a significant shift, even

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<v Speaker 6>if you look at the u END votes and how

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<v Speaker 6>African countries voted in or even unexpected against it, or

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<v Speaker 6>a large number of them choosing to abstain altogether. And

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<v Speaker 6>I think that was the first significant shift to say,

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<v Speaker 6>there is a different occurrence that's happening, and we can't

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<v Speaker 6>really interpret or read things through the same lens that

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<v Speaker 6>we had historically. Countries are asserting themselves. They have a

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<v Speaker 6>level of agency that they are trying to put out

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<v Speaker 6>there into the world, and so that happens in different

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<v Speaker 6>ways coming on board or allowing the lights of China

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<v Speaker 6>and Russia to come on board. There's the security issues

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<v Speaker 6>that Heny has spoken through, but there's also economic issues

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<v Speaker 6>to US and to South Africa and those that are

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<v Speaker 6>supporting it in their very form reform of international institutions.

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<v Speaker 6>One of the issue rights is access to funding and

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<v Speaker 6>how the developing countries are being left out for the

0:12:49.840 --> 0:12:52.280
<v Speaker 6>bar is so high for them to get access to

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<v Speaker 6>the funding that they need to develop.

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<v Speaker 1>And so when.

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<v Speaker 6>Someone like a Russia or a China comes in, of

0:12:56.920 --> 0:12:58.880
<v Speaker 6>course you can this pass the merits of the conditions

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<v Speaker 6>of their funding. If I need to grow my economy

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<v Speaker 6>today and someone is offering something, I'm.

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<v Speaker 1>Going to go for it. I'm going to do what

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<v Speaker 1>in my national interests at this particular point. And so

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<v Speaker 1>I think there's a.

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<v Speaker 6>Lot of banamafit playing growing autonomy in the region to

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<v Speaker 6>say how can we do things differently, how can we

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<v Speaker 6>do things on our term? And obviously there's a whole

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<v Speaker 6>lot of other stuff at play in the background. These

0:13:19.360 --> 0:13:22.360
<v Speaker 6>countries are not benevolent factors that aren't doing with out

0:13:22.400 --> 0:13:24.120
<v Speaker 6>of the goodness of their hearts. They have their own

0:13:24.160 --> 0:13:26.959
<v Speaker 6>interests at play as well. But what Russia and China

0:13:27.000 --> 0:13:29.520
<v Speaker 6>would like to do with the bricks club, that is

0:13:29.559 --> 0:13:31.720
<v Speaker 6>an zogle of that right. So they come to Africa

0:13:31.720 --> 0:13:33.640
<v Speaker 6>and it's not just them, there's bull countries as well.

0:13:33.880 --> 0:13:37.000
<v Speaker 6>They have ulterior momm and I think African countries the

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<v Speaker 6>leaders are time to figure out, well, what can we

0:13:39.320 --> 0:13:41.760
<v Speaker 6>get out of it? You want this only? This is

0:13:41.800 --> 0:13:43.800
<v Speaker 6>what I want to achieve what is the middle ground,

0:13:43.800 --> 0:13:45.480
<v Speaker 6>and hardly we go about doing that. So I think

0:13:45.480 --> 0:13:49.040
<v Speaker 6>things are becoming more complicated. The proxy or that we've

0:13:49.080 --> 0:13:52.080
<v Speaker 6>seen shifted, power has shifted in terms of the global order,

0:13:52.280 --> 0:13:54.720
<v Speaker 6>and everyone is just facally time to establish their place

0:13:54.760 --> 0:13:58.040
<v Speaker 6>in this and how to get the most outlaw themselves going.

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<v Speaker 2>Forward, absolutely a new multipole world and I wonder, Henry,

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<v Speaker 2>what is next to pay attention to with this block

0:14:06.360 --> 0:14:09.840
<v Speaker 2>and with these multiple forces in this new world order?

0:14:09.920 --> 0:14:13.880
<v Speaker 1>What would you say is sort of key to watch well?

0:14:13.920 --> 0:14:16.400
<v Speaker 5>I think as far as bricks is concerned, it's the

0:14:16.720 --> 0:14:20.280
<v Speaker 5>degree to which they're going to manage to cooperate economically

0:14:20.440 --> 0:14:23.320
<v Speaker 5>and increase trade. A lot of the trade within bricks

0:14:23.400 --> 0:14:26.320
<v Speaker 5>is between China and the other countries. The other intra

0:14:26.360 --> 0:14:30.920
<v Speaker 5>bricks trade isn't that significant. The other issue is, of

0:14:30.960 --> 0:14:33.040
<v Speaker 5>course the use of the US dollar, and this is

0:14:33.360 --> 0:14:36.280
<v Speaker 5>something that Russia, because of the sanctions that have been

0:14:36.360 --> 0:14:39.960
<v Speaker 5>imposed on it over its invasion of Ukraine, is especially

0:14:40.040 --> 0:14:44.200
<v Speaker 5>keen to promote. There is obviously interest in that among

0:14:44.240 --> 0:14:47.600
<v Speaker 5>bricks countries, but they have a different perspective. I think

0:14:47.600 --> 0:14:50.880
<v Speaker 5>they're looking for an alternative to their ties with the West,

0:14:50.880 --> 0:14:53.880
<v Speaker 5>but they're not looking to replace them fully, whereas Russia

0:14:54.000 --> 0:14:55.880
<v Speaker 5>is completely frozen.

0:14:55.600 --> 0:14:57.600
<v Speaker 1>Out of ties with the West.

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<v Speaker 5>So I think we will see that trend develop, but

0:15:02.080 --> 0:15:06.400
<v Speaker 5>certainly not as fast or as deeply as Russia would

0:15:06.440 --> 0:15:07.640
<v Speaker 5>like to see.

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<v Speaker 2>And you can read more on our coverage of the

0:15:10.600 --> 0:15:15.200
<v Speaker 2>Brick Summit across Bloomberg News platforms. Here's a few other

0:15:15.240 --> 0:15:19.200
<v Speaker 2>stories we're watching in the region. This week, Nigerian President

0:15:19.200 --> 0:15:23.320
<v Speaker 2>Bola Tinubu announced an overhaul of his cabinet, firing five

0:15:23.440 --> 0:15:27.320
<v Speaker 2>ministers in the first such shakeup since he took office

0:15:27.440 --> 0:15:30.960
<v Speaker 2>in May of twenty twenty three. Tinubu dropped the Minister

0:15:31.120 --> 0:15:36.720
<v Speaker 2>of Women Affairs, Tourism, Education, Housing and Urban Development, as

0:15:36.760 --> 0:15:41.200
<v Speaker 2>well as the Minister of Youth Development and South Africa

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<v Speaker 2>plans to ease visa rules for visitors from India and

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<v Speaker 2>China within days to lure tourists from the world's two

0:15:47.760 --> 0:15:51.320
<v Speaker 2>most populated nations who have been deterred by red tape.

0:15:51.520 --> 0:15:55.880
<v Speaker 2>Unlike travelers from many Western nations, Indian and Chinese tourists

0:15:56.000 --> 0:16:00.280
<v Speaker 2>need pre authorization, which could put off visitors. And you

0:16:00.320 --> 0:16:03.920
<v Speaker 2>can follow these stories across Bloomberg platforms, including the next

0:16:03.920 --> 0:16:06.560
<v Speaker 2>African newsletter. We'll put a link to that in the

0:16:06.600 --> 0:16:14.240
<v Speaker 2>show notes. This program was produced by Adrian Bradley. Don't

0:16:14.240 --> 0:16:17.400
<v Speaker 2>forget to follow and review the show wherever you usually

0:16:17.480 --> 0:16:21.680
<v Speaker 2>get your podcasts. I'm Jennifer's Abasaga. Thanks as always for listening.