At last week’s BRICS summit, hosted by Russian President Vladimir Putin, Southeast Asian nations like Vietnam, Indonesia, Thailand, and Malaysia made significant strides as they moved toward full BRICS membership. While Russia aims to secure broad support and challenge the U.S.-led financial order, many Southeast Asian countries are cautiously navigating Moscow’s goals to avoid upending the U.S. dollar’s dominance.
Putin sought to showcase that Russia is far from isolated internationally, despite facing U.S.-led sanctions over its involvement in Ukraine. His strategy included building economic support and finding ways to lessen reliance on the dollar. Yet, while he succeeded in strengthening BRICS’ influence globally, the de-dollarization agenda found limited backing. Many of these Southeast Asian nations remain wary of moving away from dollar-based transactions, given their strong trade ties with the U.S.
BRICS as a Path to Multipolarity
Southeast Asian nations see BRICS as a pathway to a multipolar world order, a model that supports their foreign policies amid the escalating U.S.-China rivalry. Russia, in particular, appeals to these countries as a counterbalance to superpowers, offering diplomatic flexibility without forcing alignment with either side. This approach has become vital as the region seeks to preserve sovereignty and independence in foreign policy.
For instance, Indonesia, known for its strong stance on sovereignty, has refrained from taking sides in the Russia-Ukraine conflict but continues to maintain economic ties with Russia. Indonesia’s new president, Prabowo Subianto, has signaled continued relations with Russia, and the nation imports Russian oil at discounted prices. Similarly, Malaysia and Vietnam benefit from Russian trade and investment, particularly in sectors like semiconductors and defense.
Southeast Asia’s Position on De-Dollarization
Putin’s push for an alternative to the dollar, however, didn’t resonate as strongly with Southeast Asia, whose economies are deeply integrated with dollar-based trade. During the summit, Indian Foreign Minister S. Jaishankar openly rejected the move to de-dollarize, prioritizing stability in dollar-based trade—a stance behind which Southeast Asian states could align without confrontation.
Complex Economic Realities in Russia’s Push for BRICS
Despite Russia’s growing influence within BRICS, the Russian economy faces strains, with prolonged sanctions, high inflation, and labor shortages impacting growth. Even Moscow’s arms exports to Southeast Asia have declined as domestic defense needs increase, challenging its role as a reliable security partner.
In sum, Southeast Asian countries’ interest in BRICS is primarily economic, providing opportunities for collaboration without compromising ties to the U.S. As BRICS continues to expand and solidify, it offers these nations an “and” rather than an “either-or” approach to international alliances.
