South Africa
Source: www.sanews.gov.za

Through its chairship, South Africa will work with its BRICS partners to advance the African agenda for growth, development and integration and to advocate for the needs and concerns of the Global South.

President Cyril Ramaphosa echoed these sentiments while updating Parliament on state capability for economic recovery and the fight against crime on Thursday in Cape Town.

The President was responding to a question on what strategic focus areas will South Africa advance during its tenure as chair of BRICS.

South Africa is chairing the BRICS group of countries in 2023 under the theme: "BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development and Inclusive Multilateralism".

South Africa will host the leaders of Brazil, Russia, India and China at the 15th BRICS Summit from 22 to 24 August 2023.

The BRICS group brings together some 3.2 billion people. After the United Nations and the Non-Aligned Movement, BRICS is among the largest bloc of countries by total population.

"As part of our strategic intent to further advance the African development agenda within the BRICS group, we are inviting several other African leaders to the summit.

"One of the priorities during our chairship is to build a partnership between BRICS and Africa to unlock mutually beneficial opportunities for increased trade, investment and infrastructure development.

"We are focusing in particular on opportunities that will generate economic growth on the continent, particularly through the African Continental Free Trade Area (AfCFTA) and infrastructure," the President said.

The President told Members of Parliament that there are great opportunities for BRICS countries to participate in infrastructure development and the AfCFTA by locating production and services activities in the continent and partnering with local companies and entrepreneurs.

Responding to how South Africa will ensure the advancement of the South-South Agenda, President Ramaphosa said that the country's priorities are responsive to the needs and concerns of the broader global south.

"Another strategic priority is strengthening multilateralism, including working toward real reform of global governance institutions and strengthening the meaningful participation of women in peace processes.

"Our priorities respond to challenges and opportunities that are shared by South Africa and other BRICS members. They are also responsive to the needs and concerns of the broader global South," he said.

The President shared that one of the founding values of BRICS is the need to restructure the global political, economic and financial architecture to be more equitable, balanced and representative.

He said that BRICS countries agree that the United Nations must remain at the centre of multilateralism and be reformed to make it more effective, inclusive and representative of the global community.

"This includes reform of the UN Security Council to ensure that African countries and other countries of the Global South are properly represented and that their interests are effectively advanced.

"The BRICS relationship extends beyond the governments. Bodies like the BRICS Business Council, BRICS Women's Business Alliance, BRICS Think Tanks Council and BRICS Civil Forum ensure that the opportunities of this association are explored across society," President Rmaphosa said.

He added that the relationship seeks to promote people-to-people contact, including among youth formations. Among other things, he said, this person-to-person contact enhances travel and tourism between BRICS countries.

In all, there are some 190 meetings and events taking place during the course of this year. – SAnews.gov.za

Russia
Source: infobrics.org

Tatiana Bokova, Intern of the Russian National Committee on BRICS Research – special for InfoBRICS

In recent years, the energy partnership has played a crucial role in Sino-Russian trade and economic cooperation. The partnership between China and Russia in the oil and gas industry is one of the most significant developments in the global energy market. This collaboration has been expanding over the last several years and has seen China become one of the largest buyers of Russian oil and gas. Interaction in the energy sector has always been the most significant, most beneficial, and most wide-ranging area of practical cooperation between the two states, and it has a solid foundation. The 1996 "Russia-China Joint Statement" laid the basis for China-Russia cooperation in the energy sector, and the field has gradually expanded from oil and gas to coal and nuclear power.

Russia is currently China's largest source of energy imports and the second largest source of crude oil imports. Gazprom announced that in 2023, Gazprom's daily natural gas exports to China via the Power of Siberia pipeline will set a new historical record. Since January 1, the company's daily export volume has reached and exceeded the level required by the 2023 agreement. In addition to its economic benefits, the cooperation between China and Russia in the oil and gas industry has significant political implications, especially in the face of Western sanctions. It symbolizes the strengthening ties between the two countries and their commitment to working together for their mutual benefit. In fact, the partnership has been so successful that other states are looking to replicate this model of cooperation.

Many experts have noted the expansion of energy cooperation between Moscow and Beijing. According to statistics released by the General Administration of Customs of China on January 20, 2023, Russia increased exports of liquefied natural gas (LNG) to China in 2022 by 43.9% to 6.5 million tons, oil - by 8.3% to 86.25 million tons. As a result, energy trade between Russia and China has grown by 64% in monetary terms and 10% in physical terms since the beginning of 2022.

"Energy cooperation between China and Russia is the cornerstone of practical interaction between the two countries and also serves as an effective force in protecting global energy security," Xi Jinping stressed in his message.

Oil industry

The oil industry is the top priority of Sino-Russian energy cooperation. Rosneft CEO Igor Sechin noted that Russian oil exports to China in January-October 2022 increased by 9.5% year-on-year to almost 72 million tons, the company said. This is equivalent to about 1.7 million barrels per day. In addition, to meet growing demand in Asia, the company is developing the major Vostok oil project, where it intends to reach a production of 115 million tons per year, or about 2.3 million barrels per day, by 2033. The project will transport oil along the Northern Sea Route through Russia's Arctic waters, reducing delivery time and costs.

Besides this oil project, CNPC and the Russian company Rosneft Oil signed an additional agreement on the purchase and sale of crude oil. According to the agreement, Russia will continue to supply 100 million tons of crude oil to China through the territory of Kazakhstan for 10 years. Meanwhile, as of January, CNPC imported over 300 million tons of crude oil and over 15 cubic meters of natural gas from Russia through the pipeline.

This partnership has also extended to the petrochemical sector. In 2019, Russia's Rosneft and China National Chemical Corporation (ChemChina) agreed to expand their cooperation, which has allowed both countries to further diversify their energy sources. This diversification is an important strategy for both states to reduce their reliance on other countries for their energy needs.

"Oil and gas cooperation is the biggest area of cooperation between China and Russia because of the huge complementarity between the two countries in the energy sector," said Lin Boqiang, director of the China Center for Energy Economics Research at Xiamen University.

Gas deals

The gas sphere is one of the most promising areas for expanding Sino-Russian energy cooperation. The pipeline is a major strategic project contributing to the Sino-Russian energy partnership, which has been agreed upon and emphasized by the heads of both countries. According to statistics, pipeline gas supplies from Russia to China in January-November 2022 increased 177 percent in value terms over the same period last year. Russia already supplies gas to China via the Power of Siberia pipeline, which began deliveries in 2019, as well as LNG. The Russian deputy prime minister emphasized that, despite the current challenges, changes in the foreign market do not affect cooperation between Russia and China and are "moving forward in all directions" in the energy sphere.

The recent announcement by Russian energy company Gazprom, that they have signed a new long-term contract to supply natural gas to China, is a testament to the strong relationship between the two countries. The deal, worth $400 billion, will provide China with 38 billion cubic meters of natural gas per year for the next 30 years. This is a significant development that underlines the success of the partnership.

In addition, China National Petroleum Corporation (CNPC) and Russia's Gazprom signed an agreement to buy and sell gas from Russia's Far East, another important result of cooperation in gas trade. The Yangtze River Underwater Crossing Project of the China-Russia Eastern Gas Pipeline, a key project in the southern section of the China-Russia Eastern Gas Pipeline, is also in full swing. With a total length of 10,226 kilometers, it is the longest tunnel through the Yangtze River under construction.

Nowadays, relatively small volumes of LNG are exported from Russia to China, but in the future, the volume of LNG supplies may become comparable with deliveries through pipeline projects. By the way, the supply of liquefied natural gas increased by 39% in volume and 150% in value, while the supply of oil increased by 10% and 50%, respectively. Sechin noted that in the future, LNG supplies to China may be at a level comparable to pipeline supplies. Russia and China are planning to jointly develop and produce equipment for the energy sector. Moscow also counts on the participation of Chinese partners in the construction of a liquefied natural gas plant in the Ust-Luga district of the Leningrad region.

For investment in the oil and gas sector, the two countries are mutually involved. China has increased its investment in Russian energy projects since 2014, when Russian companies' access to Western financing was limited because of sanctions. Chinese companies already hold stakes in Russian projects, including Novatek's Yamal LNG and Arctic LNG 2. Meanwhile, Russia has invested $55 billion in a pipeline deal with China, with only $3.81 billion in natural gas imports through the pipeline since December 2019, according to Chinese customs data.

Despite the challenges of distance and fluctuating prices, the cooperation between China and Russia is expected to continue to grow in the coming years. Both countries are actively seeking to strengthen their economic and political ties, switch to payment in yuan and rubles, and this partnership will play a significant role in achieving that goal. Moscow and Beijing share a common position on the prospect of developing renewable energy sources, introducing green, low-carbon and sustainable development, and expanding energy cooperation on a larger, deeper scale.

In conclusion, the cooperation between China and Russia in the oil and gas industry is a significant development in the energy market. The partnership has provided benefits to both countries and has become an example of successful international cooperation. The cooperation between Moscow and Beijing in energy is a vital step towards a more sustainable and secure global energy landscape.

Energy cooperation has always been the weightiest, most successful and broadest area of practical cooperation between states has a solid foundation for continuously expanding new cooperation. In recent years, energy collaboration Sino-Russian has been expanding, and several oil and gas pipeline projects between the two countries have been put into operation from one to the other. And this connection will only expand in the future as China's demand for Russian oil and gas continues, and both sides can explore further cooperation in renewable energy and other areas.

China
Source: ndb.int

The New Development Bank (NDB) has initiated a process of the leadership transition, which occurs in a mutually agreed manner and in accordance with the Bank's governance and procedures.

NDB President Marcos Troyjo will step down by March 24, 2023. The Board of Governors of the New Development Bank will then elect a new President nominated by Brazil, to fulfil the incumbent rotating mandate expiring on July 6, 2025. After the election, the new President takes office.

Mr. Marcos Troyjo has served as the President of the NDB since July, 2020, and has been instrumental in the NDB's success.

During President Troyjo's tenure, NDB accomplished important milestones. He has driven the Bank's initial membership expansion, strengthened the ESG (Environmental, social and governance) Department, and established the Independent Evaluation Office. He also led the moving-in of the Bank to its permanent Headquarters in Shanghai.

He worked towards devising and rolling out NDB's second General Strategy (2022-2026) and to expand the Bank's portfolio of project approvals, now amounting to approx. USD 32.8 billion since the institution's start of operations in 2015. NDB today features almost 100 projects in member-countries — in sectors such as clean energy, transport infrastructure, irrigation, water resource management and sanitation, urban development, social infrastructure and environmental efficiency.

During Mr Troyjo's presidency, NDB saw the completion of the USD 10 billion paid-in capital by its founding members. Under President Troyjo's leadership, NDB also deepened its green credentials. In 2021, the Bank issued the first Sustainable Development Goals (SDG) bond in China in partnership with the United Nations Development Program (UNDP).

During his tenure, President Troyjo introduced a new organizational structure aimed at more complex and specialized private-sector operations, with a dedicated focus on project portfolio management. The role and independence of internal audit and compliance were enhanced, a Talent Management Division was established, and NDB's Indian Regional Office was launched.

President Troyjo greatly enhanced NDB's public profile through multiple interactions with development institutions, think-tanks, universities, research centers and conferences across member-countries and beyond.

He launched the NDB THINKLab initiative to promote regular engagements between the Bank's team and some of the world's most renowned thought leaders in development, economics and public policy.

President Troyjo's passion for international cooperation and teamwork has added significant contributions in NDB's journey towards becoming a premier development bank for emerging economies.

In line with the Bank's procedures and high standards of governance, the election process for the position of the NDB President is being conducted in a smooth and orderly manner.

According to the Articles of Agreement of the New Development Bank, the NDB Board of Governors elects a President from one of the founding member countries on a rotational basis.

South Africa
Source: www.gov.za

Question

1. Mr T N Mmutle (ANC) to ask the President of the Republic:

Given that South Africa will be assuming the Chairmanship of the BRICS nations in 2023,

(a) what strategic focus areas will South Africa advance during its tenure as the Chair of BRICS and

(b) how will South Africa ensure the advancement of the South-South Agenda, including the reform of the United Nations Security Council?

Reply:

Honourable Members,

South Africa is chairing the BRICS group of countries in 2023 under the theme, "BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development and Inclusive Multilateralism."

South Africa will host the leaders of Brazil, Russia, India and China at the 15th BRICS Summit from 22 to 24 August 2023.

The BRICS group brings together some 3.2 billion people. After the United Nations and the Non-Aligned Movement, BRICS is among the largest bloc of countries by total population.

As part of our strategic intent to further advance the African development agenda within the BRICS group, we are inviting several other African leaders to the summit.

One of the priorities during our chairship is to build a partnership between BRICS and Africa to unlock mutually beneficial opportunities for increased trade, investment and infrastructure development.

We are focusing in particular on opportunities that will generate economic growth on the continent, particularly through the African Continental Free Trade Area and infrastructure. There are great opportunities for BRICS countries to participate in infrastructure development and the AfCFTA by locating production and services activities in the continent and partnering with local companies and entrepreneurs.

Another strategic priority is strengthening multilateralism, including working toward real reform of global governance institutions and strengthening the meaningful participation of women in peace processes.

Our priorities respond to challenges and opportunities that are shared by South Africa and other BRICS members.

They are also responsive to the needs and concerns of the broader global South.

One of the founding values of BRICS is the need to restructure the global political, economic and financial architecture to be more equitable, balanced and representative.

The BRICS countries agree that the United Nations must remain at the centre of multilateralism and be reformed to make it more effective, inclusive and representative of the global community. This includes reform of the UN Security Council to ensure that African countries and other countries of the Global South are properly represented and that their interests are effectively advanced.

A practical example of the contribution of BRICS to the advancement of the South-South agenda is the New Development Bank, which was established by BRICS countries in 2015 to provide financial support to emerging market and developing economies for infrastructure and sustainable development.

The Bank has to date approved eleven projects in South Africa, valued at around R100 billion in areas like road improvement, ports, water provision and energy.

In 2021, the Bank welcomed Bangladesh, Egypt, the United Arab Emirates and Uruguay as new members firmly positioning the Bank as an important global financing mechanism for emerging markets and developing economies.

The BRICS relationship extends beyond the governments of the member countries. Bodies like the BRICS Business Council, BRICS Women's Business Alliance, BRICS Think Tanks Council and BRICS Civil Forum ensure that the opportunities of this association are explored across society. The relationship seeks to promote people-to-people contact, including among youth formations. Among other things, this person-to-person contact enhances travel and tourism between BRICS countries.

In all, there are some 190 meetings and events taking place during the course of this year.

Through its chairship, South Africa will continue to work with its BRICS partners to pursue the African agenda for growth, development and integration and to advocate for the needs and concerns of the Global South.

I thank you.

South Africa
Source: www.iol.co.za

In 2017, Cyril Ramaphosa was the dream candidate of the EU. He simply could do no wrong.

Every EU Ambassador in Pretoria praised him as the one who would save the country from its abyss of the "lost Zuma years". Angela Merkel from Germany, especially, included Ramaphosa in her most strategic "compound" plans and walked him holding hands into high-level meetings that were closed to other African leaders.

Ramaphosa, now approaching the end of his first term in office, appeared on March 6 on the national broadcaster's cameras late, worn out and hesitant. He announced ministerial portfolio rotations and added four new "ministers in the Presidency" to a large presidential team of about 50, who form a de facto parallel government that the Constitution never envisaged.

For the diplomatic community in Pretoria, it is difficult to deal with two parallel executives. For international relations, presidential adviser Bejani Chauke, the 2017 nomination campaign manager of Ramaphosa, is the "invisible" minister of international relations. Cabinet minister Naledi Pandor is hardly ever informed of Chauke's deals and commitments that he makes during travels, whether to Mozambique, Saudi Arabia, Russia, Spain, Nigeria, Rwanda, Cameroon, Gabon, Chad, DRC, CAR, Equatorial Guinea, Guinea Conakry, Gabon, Egypt or Morocco.


Chauke, together with his business partner, Nkuli Moyo, has eroded South Africa's foreign affairs credibility. The country's stance on all major international challenges is perceived as unreliable and vacillating, from the Ukraine to Israel, from Palestine to Kashmir, or Cuba, Rwanda, DRC, Iran.

Nobody knows who will determine South Africa's chairmanship of the BRICS, Chauke or Pandor. A crucial turning point for the BRICS lies ahead with the possible accessions of Saudi Arabia, Algeria and Turkey and maybe others more. Will South Africa be ready, willing and able to seize the opportunity of giving birth to a future BRICS that could grow to balance out the hegemony of the EU and Nato? Russia and China are concerned. Russia has been waiting months for at least a small courtesy reply to its formal offer to assist South Africa during its energy emergency. Russia offered in vain to dispatch a few hundred thermal power station experts, to help restore the reliability of Eskom's electricity generation.

China's good will is being tested by the unwillingness of the South African president to put an end to the ugly spat and petty judicial quarrels that have immobilised more than 500 brand-new Chinese locomotives, or to end the bitter platinum feud between feuding BEE partners of China's largest state-owned mining company, the Zijin Mining Group. Not to mention that hundreds of young medical doctors who were given bursaries to study and qualify in China, are refused accreditation and are prohibited from working in South Africa by the South African regulator, the Medical and Dental Professional Board. China perceives this as a hostile and insulting conduct by its BRICS partner.

The pillars of the old stalwart power in the ANC, led by ministers Gwede Mantashe, Pravin Gordhan and Bheki Cele were left untouched by the Cabinet reshuffle. This comes as a shock to diplomats from East to West. These are the ministers who are responsible for the dramatic decline of the mining industry, the bankrupting of all relevant state-owned enterprises, including the Post Office and what was once one of the world's best airlines, SAA, and, finally, in the case of Cele, the absurd rise in crime and a growing threat of anarchy.

The newly appointed electricity minister in the presidency, Kgosientsho Ramokgopa, is a civil construction engineer and holds a PhD in public administration from the University of Pretoria, a predominantly Afrikaans institution. Only his good intentions qualify him to salvage one for the world's large and complex public power utilities. Eskom has accumulated an immense R400 billion (at least €25bn) in debt and cannot find money to buy spare parts. Ramokgopa is known as "Sputla", after he, as a teenager in Atteridgeville, demonstrated a great ability in soccer – to run faster than others. The question that foreign correspondents and analysts are asking is: How fast will he run when the electricity grip collapses?

Immediately after the announcement of the new executive appointments, Ramaphosa's brother-in law, Patrice Motsepe, South Africa's first business champion, reminded the public that only the recruitment of the best managers available globally and an uncompromising war on corruption, could save South Africa's key industries. The statement is a stark dismissal of the choices made by Ramaphosa. Motsepe, as a major mining investor, knows only too well that consumers in Russia pay $0.06 (R1.11) per kwh with zero blackouts (with a maximum total corporate tax rate of 20%), as against R2.40 per kwh with eight-hour blackouts in every 24 hours in South Africa. In Iran, with a national economic framework comparable to South Africa, consumers buy reliable electricity at R0,18 per kwh.

Ramaphosa paid for the support he received in 2017 from the Europeans, with the endorsement of especially Germany's ambition to pioneer "energy transition" in third countries, especially in South Africa, a country that contributes only 1.09% to the world's carbon emissions.

In order to accelerate the installation of imported solar and wind farms, Eskom was decapitalised so that it would no longer be able to maintain its fleet of coal-fired power stations. The decapitalisation was achieved by allowing municipalities to never pay for electricity consumed, accumulating within Eskom over R56bn in unrecoverable debt.

The other decapitalisation policy designed to collapse the coal-fired national grid in favour of "energy transition", was to force Eskom to enter into long-term power purchase agreements with producers of "renewable" energy at an early stage, when such energy was exceedingly expensive.

Eskom spends about 25% of its income on the purchase of "renewable energy" which makes up barely 5% of its energy production. Any business that spends 25% of its disposable income on generating a mere 5% of its sales, will be doomed. But the reality is even worse. The imperative back-up power for the renewable energy consumes some R52bn annually, mainly because the power is produced with diesel-fed Open Cycle Gas Turbines, at a cost of R9.30 per kwh. The resulting permanent power cuts since September last year have cost South Africa a 1.3% decline in gross domestic for the last quarter in 2022.

Germany, the EU and the US reject the accusation that their determination to combat global warming could be responsible for South Africa's demise. In the words of a retired but most senior German diplomat: "South Africa is an equal and independent partner in the international community of states. It is the responsibility of its government to determine the feasibility and pace of energy transformation and to resist undue or ruinous pressures."

The well-articulated point David Pilling made in the Financial Times is that South Africa cannot continue administering poverty without a viable recovery and development plan. On March 6, Ramaphosa formalised the appointment of Paul Mashatile as deputy president, as determined by the 55th Conference of the ANC last December. Mashatile has thus been placed in the position of Ramaphosa's successor.

On March 8, Standard & Poor's, the world's top rating agency, reacted by lowering South Africa's credit rating outlook from positive to now merely stable but affirmed the long-term foreign and local currency debt ratings at BB- and BB, respectively. South Africa, and the world, will look brighter post Ramaphosa.

*Andre Thomashausen is a German attorney and Unisa Professor Emeritus for International Law.

** The views expressed here are not necessarily those of Independent Media.