Over the past two years, the global energy and financial architecture has been undergoing a seismic shift, with the BRICS bloc—comprised of Brazil, Russia, India, China, and South Africa—emerging as a formidable challenger to Western dominance. As the United States intensifies its diplomatic and economic pressure on countries buying Russian oil, the stage is set for a broader contest over sovereignty, economic development, and the very rules that govern global trade and finance.
At the heart of this evolving narrative is India’s calculated balancing act. Since 2022, when Western sanctions on Moscow ramped up in response to the war in Ukraine, India has dramatically increased its imports of Russian crude oil. According to figures cited by BRICS+ Consulting Group, Russia now accounts for about 35–36% of India’s total oil imports in 2023–24—roughly 1.57 million barrels per day out of a total 4.88 million. This is a staggering jump from just 2% before the conflict began. The appeal? Russian crude is sold at a discount of $8–12 per barrel compared to Brent, saving India billions of dollars in foreign exchange and helping keep inflation steady at around 5.1% in 2025.
This economic pragmatism has not gone unnoticed—or unchallenged—by Washington. U.S. officials have repeatedly argued that such purchases “finance Moscow’s aggression,” and in August 2025, the Trump administration reportedly raised tariffs on Indian exports to 50%, accusing New Delhi of “undermining sanctions.” Yet, India has stood its ground. Trade Secretary Rajesh Agarwal was clear: while India is open to expanding energy cooperation with the U.S., decisions will hinge on “price competitiveness and national interest.” In other words, India is unwilling to pay more for energy just to satisfy Western political goals.
Japan, a key U.S. ally and G7 member, finds itself in a similar bind. Despite pressure from Treasury Secretary Scott Bessent to “phase out Russian energy,” Japan continues to rely on Russian liquefied natural gas (LNG) for about 9% of its imports, valued at ¥582 billion (US$3.9 billion) in 2023. Tokyo had initially halted Russian crude imports but was later granted a special sanctions waiver by Washington to keep buying from the Sakhalin-2 project, which supplies critical LNG to Japan’s northern regions. This selective enforcement highlights the inconsistencies in U.S. sanctions policy: flexibility for allies when energy realities demand it, but punitive measures for Global South nations asserting similar logic.
The consequences of these shifting alliances and policies are profound. For Russia, the redirection of oil flows to Asia has been transformative. In 2021, Europe accounted for more than half of Russian oil exports. By mid-2024, that share had plummeted below 15%, with shipments to India, China, and other Asian markets filling the gap. Chinese imports of Russian crude surged to 2.3 million barrels per day, up 24% year-on-year, according to China’s General Administration of Customs. This reorientation has enabled Moscow to maintain energy revenues despite sanctions, while deepening economic ties within the BRICS framework.
The numbers are telling. BRICS members now account for about 40% of global GDP (PPP-adjusted) and nearly 45% of world oil production. With both Saudi Arabia and Russia among the top two global exporters, BRICS energy cooperation has the potential to reshape pricing mechanisms, logistics corridors, and even the currencies used for trade. Already, Russia and India have begun settling part of their energy trade in rupees, while China and Russia conduct a growing share of transactions in yuan. These moves directly challenge the U.S. dollar’s dominance in oil markets—a dominance that has been a cornerstone of American geopolitical influence since the 1970s petrodollar system.
But the story doesn’t end with oil. BRICS is taking bold steps to challenge the global financial order on multiple fronts, as reported by Pars Today. The bloc has established parallel financial institutions like the New Development Bank (founded in 2014) and is promoting alternative payment systems such as China’s Cross-Border Interbank Payment System (CIPS). These initiatives are designed to reduce dependence on the U.S. dollar and the SWIFT system, creating financial channels resilient to external oversight and control.
BRICS members are also pursuing a diverse set of strategies to further this goal. They are promoting the use of national currencies in trade settlements, expanding bilateral currency swap agreements, developing barter and clearing arrangements, investing in digital currencies, and even creating shared payment platforms like "BRICS Pay." By integrating influential Persian Gulf states like the United Arab Emirates and deepening relations with Saudi Arabia, the bloc aims to reduce the region’s dependency on the dollar. China, for instance, is actively encouraging oil producers to settle transactions in yuan, while Russia is developing non-dollar trade mechanisms with Iran.
This ambitious agenda is not without its challenges. BRICS faces internal rivalries, issues with the convertibility of national currencies, limited liquidity compared to the dollar, and significant differences in economic development and national interests among its members. Nonetheless, these efforts have already begun to alter the balance of power in the global financial system. As Pars Today notes, “BRICS’s efforts have challenged traditional U.S. dominance and provided more maneuvering room for developing countries.”
The implications for global energy stability are significant. The International Energy Agency warned in mid-2024 that any new disruption in Russian supply would “significantly tighten global markets” and threaten post-pandemic recovery in developing nations. A sudden halt to Russian oil imports could push Brent crude prices above $100 per barrel, reigniting inflation worldwide and hitting the Global South hardest.
Washington’s strategy, which frames the issue as a choice between democracy and autocracy, has created a clear divide. For many countries in the Global South, the real struggle is for autonomy in a system where Western powers still dictate the rules. For India, China, and others, the question isn’t about loyalty to Russia—it’s about rejecting economic coercion disguised as moral diplomacy. As Dr. Iqbal Survé, past chairman of the BRICS Business Council, put it, “The US may be able to strong-arm smaller economies, but the geopolitical balance has shifted. BRICS nations, representing over half the global population, are crafting new systems of trade, finance, and energy exchange that dilute Western leverage.”
As the West grapples with slowing GDP growth—the U.S. at 2.4%, the EU at just 1.1%—the Global South continues to expand, led by India’s projected 6.3% growth and China’s 4.5%. Energy independence and financial innovation are not just economic choices; they are strategic imperatives shaping who gets to write the next chapter of global order.
In this moment of transition, the question is not whether nations will stop buying Russian oil or abandon the dollar overnight. Rather, it’s whether they will continue to accept a world where such choices are made for them—or seize the opportunity to build a more balanced, multipolar system where access, affordability, and sovereignty are shared, not dictated.