And there's happiness in money.: Uruguay wants to join the BRICS Bank

Uruguay may become the ninth member of the New BRICS Development Bank — the agreement is already under consideration by the national parliament of the Latin American country, the Russian Embassy in Montevideo told Izvestia. The administration of the new President, Yamando Orsi, which assumed office on March 1, expects to use loans to develop infrastructure projects in the field of education and healthcare. At the same time, the country has no plans to join BRICS yet, although the government of the left may be more loyal to Russia. What else is interesting about the NBR in Uruguay and how our cooperation with it will develop under the new leader is in the Izvestia article.

Why does Uruguay need a New BRICS Development Bank

The new BRICS Development Bank started operating in 2015 as an alternative to Western financial mechanisms. Initially, the founders of the BRICS — Brazil, Russia, India, China and South Africa - became members of the NBR. Bangladesh and the UAE joined them in 2021, and Egypt in 2023.

— As for Uruguay's joining the BRICS structures, the national parliament is considering an agreement on the country's accession to the New Development Bank, the Russian Embassy in Uruguay told Izvestia.

At the end of December last year, the president of the New Development Bank, Dilma Rousseff, met with the elected President of Uruguay, Yamando Orsi, as well as with the future members of his administration at that time, to discuss the country's accession to this structure.

Following the talks, Dilma Rousseff said at a press conference that she sees "it is important that Uruguay completes its accession to the BRICS NBR." The president of the bank clarified that Montevideo expects to use the loans to finance its infrastructure projects in the field of healthcare and education, as well as to develop the digital environment.

The majority of shares in the NBR are held by the founders of the organization — 100,000 for each country. Any state recognized by the United Nations can join the NDB, but it is not necessary to be a part of the BRICS.

Libra Reception: BRICS put expansion on pause

The Brazilian Foreign Ministry spoke about the difficulties faced by the association after the increase in the number of participants.

By the way, regarding Uruguay's membership in the association itself, Brazilian President Luiz Inacio Lula da Silva, whose country holds the presidency this year, recently invited Uruguay, Mexico and Colombia to participate in the BRICS summit on July 6-7. The Brazilian leader noted: "Even if they are (Uruguay, Mexico and Colombia. — Ed.) are not members of the group, it is important that they participate, because this is a moment to communicate with the whole world."

— According to the statements of the Uruguayan representatives, the issue of the Eastern Republic joining the BRICS is not currently on the agenda, the Russian Embassy added.

Cooperation of the Russian Federation with the new authorities of Uruguay

In recent years, Uruguay has taken a restrained position regarding assessments of Russia's foreign policy. Montevideo did not impose or support sanctions against it, nevertheless, following the results of the Ukrainian conference in Burgenstock, Switzerland, last year, the country signed a final declaration condemning Moscow's actions. However, after the inauguration of its new president, Yamando Orsi, the situation may change. A representative of the center-left Broad Front Party (Frente Amplio) won the second round of elections in November 2024 by a margin of less than 100,000 votes, marking the return to power of the leftist forces that ruled from 2005 to 2020. Orsi will be in power for five years.

On March 1, Russian Ambassador to Uruguay Andrey Budaev took part in the celebrations on the occasion of Orsi's inauguration. The diplomat confirmed the readiness of the Russian side to continue the traditionally friendly relations with Uruguay on the basis of equality, mutual respect and mutual benefit.

The diplomats also note that the further development of mutually beneficial trade and economic cooperation, cooperation in the cultural and humanitarian fields is of particular interest. The embassy expressed the hope that Montevideo would show a similar interest in strengthening relations with Moscow.

According to the data of 2022, the trade turnover between Russia and Uruguay amounted to $191.2 million. Russian exports reached $118.7 million, while imports reached $72.5 million. In 2023, according to Daniel Castillos Gomez, Uruguay's ambassador to the Russian Federation, the trade turnover was at the level of less than $100 million. At the same time, in the period from 2012 to 2016, Russia was among the seven to eight most important markets for Uruguay. The main difficulties in trade between countries are primarily related to logistics and payments.

At the same time, despite the possible prospects for Russian-Uruguayan cooperation, Montevideo's priority is unlikely to be the development of this particular area. The expert community believes that the main interest of the new authorities will be centered around cooperation with the countries of the region, including within the framework of MERCOSUR, as well as around strengthening ties with China.

— The main challenge for the new administration will be to build harmonious relations with both the United States and China, with which Montevideo cooperates in the agricultural sector, says "Izvestia" Head of the Center for Political Studies of the ILA RAS Nadezhda Kudeyarova.

At the same time, Uruguay is not included in the focus of U.S. interests in the Latin American region, so the level of its cooperation with Washington will largely depend on Montevideo's activity in this area.