Putin Proposes SCO Joint Bonds for Deeper Economic Ties
Russian President Vladimir Putin has proposed the issuance of joint bonds by Shanghai Cooperation Organisation (SCO) members. This initiative is part of a broader strategy to deepen economic ties within the group, alongside suggesting a joint payments system to enhance trade settlements amidst external monetary pressures.
- Country:
- Russia
In a significant move to strengthen economic collaboration, Russian President Vladimir Putin has called on the Shanghai Cooperation Organisation (SCO) to consider issuing joint bonds. This proposal, made during a summit in China, represents a potential deepening of economic cooperation among the organization's ten member states.
President Putin advocated for creating a unified payments system and investment project bank, emphasizing these measures could protect economic exchanges from external financial fluctuations. Established initially as the Shanghai Five in 1996, the SCO now comprises major Asian economies, including China, India, and Russia.
This initiative aligns with Russia's strategic aim to develop trade mechanisms that avoid reliance on the U.S. dollar and euro, a response to Western sanctions impacting Russian financial transactions after the 2022 Ukraine invasion. Despite such challenges, the SCO economies reportedly experienced a 5% growth in 2024.
(With inputs from agencies.)
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