When Iran officially joined the expanded BRICS+ group in January 2024, it signaled more than just a diplomatic milestone. Alongside Egypt, the UAE, and Ethiopia, Iran stepped onto a global stage that now encompasses over 40 percent of the world’s population and about 26 percent of global GDP, according to the International Monetary Fund. Yet, for all the fanfare, the road from symbolism to substance is anything but straightforward.
Iran’s entry into BRICS+—a club already home to giants like China, India, and Russia—follows a careful strategy of integrating into multilateral frameworks. This approach has seen Iran ink a free trade agreement with the Eurasian Economic Union (EAEU), signed back in 2019 but only coming into force in May 2025. It also became a full member of the Shanghai Cooperation Organization in 2023. For Tehran, these steps are about more than optics; they’re about carving out influence and opportunity in a world where sanctions and isolation remain stubborn realities.
"BRICS is mostly a platform for dialogue and sharing visions rather than a joint market or economic union,” explains Dr. Benyamin Poghosyan, Senior Research Fellow at APRI Armenia, in comments reported by Siranush Grigoryan. “There is a BRICS New Development Bank, but without a unified currency or integrated market, it functions more as a forum." In other words, while the group’s economic heft is undeniable, the immediate benefits for Iran—especially under the weight of U.S.-led sanctions—are limited.
Sanctions continue to define Iran’s economic landscape, hampering access to global financial markets and foreign investment, as noted by the U.S. Treasury. Still, Iran’s oil sector remains a lifeline. In July 2025, crude exports averaged around 1.8 million barrels per day, with a staggering 95 percent of those shipments headed for China, according to the Foundation for Defense of Democracies. The IMF puts Iran’s oil revenues at over $25 billion in 2022, but this reliance on a single commodity leaves the economy exposed to price swings and external shocks. Inflation and youth unemployment, for example, persist as chronic challenges.
Dr. Poghosyan is clear-eyed about the limits of BRICS+ membership: “Even though Iran is sanctioned, one of its biggest income sources is oil exports—for example to China. BRICS+ membership will not directly reduce the impact of sanctions, but it creates a table for dialogue and potential coordination.” This sentiment is echoed by many regional analysts who see the grouping more as a platform for conversation than as a panacea for Iran’s economic woes.
Yet, the winds of change are blowing through the world’s financial architecture. Plans for a shared BRICS currency are still a distant prospect, but the use of alternative currencies—like the Chinese yuan, Russian ruble, and UAE dirham—is on the rise. For Iran, which remains excluded from the SWIFT global payment system, this shift is vital. Settling transactions in non-dollar currencies gives Tehran extra breathing room, reducing its exposure to sanctions that would otherwise cripple dollar-based trade. The Financial Times and other outlets have highlighted this trend as a potential game-changer, especially as more countries seek ways to bypass Western financial chokepoints.
Perhaps the most tangible avenue for progress lies in infrastructure, particularly the International North–South Transport Corridor (INSTC). Stretching 7,200 kilometers from India to Russia via Iran, this multimodal route promises to slash shipping times from up to 60 days down to about 25–30, while cutting costs by an estimated 30 percent, according to the World Bank. Cargo volumes on the INSTC stood at 14.5 million tonnes in 2022, with projections soaring to 45 million tonnes by 2030, as reported by Debuglies. In February 2025, Iran and Russia took a crucial step by advancing financing for the Rasht–Astara railway—the last missing piece needed to unlock the corridor’s full capacity.
“Sectors most likely to grow for Iran through BRICS are infrastructure and transport corridors,” Dr. Poghosyan emphasizes. For Armenia, which sits at the crossroads of these shifting routes, the stakes are high. If Iran’s infrastructure projects remain on track and regional stability holds, Armenia could position itself as a vital connector for southbound trade, reducing its dependence on traditional northern corridors. According to ArmInfo, Yerevan has also applied for full membership in the Shanghai Cooperation Organization, hoping to broaden its international partnerships and secure a bigger role in Eurasian economic networks.
The regional picture, however, is far from static. BRICS+ now brings Iran into the same forum as Saudi Arabia and the UAE—countries with whom relations have been anything but smooth. The 2023 rapprochement between Iran and Saudi Arabia, brokered by China and reported by the BBC, opened the door for greater engagement. While deep-seated rivalries persist, participation in the same multilateral group offers a rare channel for dialogue. Energy is another binding thread: BRICS+ nations collectively account for over 43 percent of global oil output and 36 percent of natural gas production, according to the International Energy Agency. For Iran, often sidelined in Western-led agencies, this is a chance to shape global energy governance from within.
But Iran isn’t the only country eyeing the opportunities presented by BRICS+. South American nations, led by Brazil, are preparing to connect with the BRICS cross-border payment system—a project championed by Russia’s Deputy Foreign Minister Sergey Ryabkov and discussed at the July 2025 BRICS summit. Ryabkov told Coindoo.com that the system could be operational before 2030 and aims to provide “a fairer and more balanced financial architecture” for developing economies. Interest from Latin America has surged, with several countries signaling readiness to join as soon as the system goes live. African countries, too, are watching closely, eager for a way to bypass Western sanctions and foster more independent financial ties with Asian markets.
This new payment network is designed to reduce dependence on the U.S. dollar and create a global settlement system that could, over time, erode Washington’s influence over international trade. Analysts caution that a successful rollout could redirect trade flows, promote the use of local currencies, and even raise inflationary pressures in the United States. Critics, however, warn that the system’s success will depend on whether participating countries can guarantee transparency, liquidity, and interoperability on a global scale.
For all its promise, the BRICS+ project is not a magic bullet. As Dr. Poghosyan succinctly puts it: “BRICS will not dramatically transform Iran’s economy overnight. But it gives Iran a voice—and opens long-term pathways in infrastructure and connectivity.” For Armenia and its South Caucasus neighbors, the challenge is to turn participation in these frameworks into tangible gains rather than remain on the sidelines.
As the decade unfolds, the world’s financial and logistical maps may look dramatically different. Whether these changes deliver real benefits—or simply add new layers of complexity—will depend on the choices made by governments, businesses, and communities across the Global South. One thing’s certain: the days of business as usual are numbered.