Iran Joins BRICS: A Strategic Move Amid Economic and Political Realignments

Iran's official entry into the BRICS alliance marks a significant geopolitical milestone as Tehran seeks new avenues to counteract the economic strain imposed by longstanding U.S. sanctions. With this membership, effective from January 2024, Iran aims to deepen its ties with major emerging economies—Brazil, Russia, India, China, and South Africa (the original BRICS nations)—and leverage the alliance for economic relief and political influence.

Why BRICS Matters to Iran

1. Expanding Trade Opportunities

BRICS countries collectively represent around 40% of the world’s population and account for more than 25% of the global GDP. For Iran, these new trade avenues are seen as potential lifelines to diversify its economic dependencies, given its isolation from Western markets. Iran plans to capitalize on increased trade with nations like China and India, with which it has already established significant economic ties. This move is intended to boost energy exports, industrial investments, and cross-border financial collaborations.

2. A Political Win for Tehran

Beyond economic prospects, Iran’s entry into BRICS has political ramifications. For the administration of President Ebrahim Raisi, joining this bloc is not just an economic move but a symbolic challenge to Western dominance. Iran views its membership as a diplomatic victory, showcasing that Western efforts to isolate the nation have not been entirely successful. The addition of other countries such as Saudi Arabia and the UAE to the bloc highlights a shift towards multilateral diplomacy and regional cooperation.

3. De-Dollarization and Financial Alternatives

One of the key agenda points for BRICS is the de-dollarization of international trade. Iran’s participation aligns with its objective of reducing dependency on the U.S. dollar in financial transactions, a necessity given its restrictions from the global financial system. The BRICS bloc is working towards using national currencies for trade and establishing alternative financial settlements, which could alleviate some of the pressure on Iran’s economy.

Strategic Benefits and Challenges

Strategic Benefits

• Energy Sector Growth: As a major oil and gas producer, Iran aims to boost its energy exports within the BRICS framework, tapping into markets in China, India, and beyond.
• Infrastructural Investments: Iran expects increased foreign investments in its infrastructure and industrial sectors, particularly from China and Russia, which have already shown significant interest in its market.
• Counterbalancing U.S. Sanctions: By strengthening ties with BRICS nations, Iran seeks to navigate around U.S. sanctions and foster economic resilience.

Challenges Ahead

However, Iran’s ambitions face obstacles. Not all BRICS members are equally enthusiastic about risking their economic ties with the United States to deepen relations with Iran. Additionally, Iran remains on the Financial Action Task Force’s (FATF) blacklist, which complicates international banking relations and trade with BRICS nations. Tehran’s political and economic ambitions within BRICS will hinge on its ability to adapt to these challenges and capitalize on the bloc’s financial mechanisms.

BRICS Membership as of October 2024

Country	Status
🇧🇷 Brazil	Founding Member
🇷🇺 Russia	Founding Member
🇮🇳 India	Founding Member
🇨🇳 China	Founding Member
🇿🇦 South Africa	Member (Since 2010)
🇪🇬 Egypt	Full Member (2024)
🇪🇹 Ethiopia	Full Member (2024)
🇮🇷 Iran	Full Member (2024)
🇦🇪 UAE	Full Member (2024)
🇸🇦 Saudi Arabia	Invited to Join

Officially Applied for Membership

• Algeria, Azerbaijan, Bahrain, Bangladesh, Belarus, Bolivia, Cuba, Kazakhstan, Kuwait, Malaysia, Pakistan, Palestine, Senegal, Thailand, Turkey, Venezuela, Yemen, Zimbabwe.

Expressed Interest in Joining BRICS

• Angola, Cameroon, Central African Republic, DR Congo, Congo, Ghana, Nigeria, South Sudan, Sudan, Tunisia, Uganda, Colombia, El Salvador, Nicaragua, Peru, Afghanistan, Indonesia, Iraq, Laos, Myanmar, Sri Lanka, Syria, Vietnam.

Conclusion

Iran’s full membership in BRICS signifies its intent to reshape its global relationships and reduce economic dependency on Western nations. While challenges remain, including the ongoing impact of U.S. sanctions, Iran’s strategy is clear: deepen ties with emerging powers, leverage alternative financial systems, and push for a more multipolar global order. The coming years will reveal how effectively Tehran navigates its new position within BRICS and whether this diplomatic win translates into tangible economic gains.