Deputy Prime Minister Alexei Overchuk took part in the events of the 11th Annual Meeting of the New Development Bank Board of Governors, held on 14–15 May in Moscow, and delivered remarks at the NDB flagship governors’ seminar, Development Financing in an Era of Technological Revolution.
Alexei Overchuk takes part in the annual meeting of the New Development Bank Board of Governors
Alexei Overchuk takes part in the annual meeting of the New Development Bank Board of Governors
Alexei Overchuk takes part in the annual meeting of the New Development Bank Board of Governors
In his address, Alexei Overchuk drew attention to the key factors shaping development in the modern world. “Two to three years ago, we heard opinions that de-globalisation was something temporary, that everything would return to normal, be as before, and the world would once again become global. But today it is clear: globalisation is over. We must recognise this fact and accept it. The NDB should look at how member countries will respond to these changes and how the bank itself can support this process,” he noted.
According to the Deputy Prime Minister, de-globalisation is manifesting itself in the rupture of traditional supply chains, the regionalisation of markets, and price disparities, primarily in energy resources. “Affordable energy is a key factor of economic competitiveness,” Alexei Overchuk underscored, noting Russia’s role as a reliable energy supplier for neighbouring states, including the countries of the Eurasian Economic Union.
Addressing the growing role of artificial intelligence as a major energy consumer, the Deputy Prime Minister called for the development of sustainable energy sources, noting that, despite the positive environmental effects of using alternative sources such as solar and wind energy, data centres require a more reliable source – nuclear power. He stressed that amongst the NDB member states there are countries that possess these technologies and are capable of providing them to other members. “This is extremely important because energy consumption will grow. It will increase due to the growing role of AI in our societies. This is a technological driver that influences technology, citizens’ daily lives, and public policy. It is very important to provide answers to these challenges at the national level. At the same time, it must be recognised that addressing these challenges unilaterally, at the level of an individual state, is extremely difficult.”
Highlighting the advantages of BRICS as a platform for equal dialogue, Alexei Overchuk noted: “We all value independence and make decisions based on respect and consensus, regardless of the size of the economy.” In the context of the financial sovereignty of member states, the Deputy Prime Minister referred to Russia’s experience in creating alternative financial systems. “When Visa and Mastercard withdrew, our system was already in place and seamlessly replaced them,” he observed. “Bilateral trade with the People’s Republic of China amounts to approximately $240 billion, and 98 percent of settlements are already conducted in national currencies. With our closest neighbours – the figure stands at 93 to 95 percent in national currencies. This transition occurred without administrative coercion. Commercial and market forces identify avenues for trade. It is essential to support the private sector by providing infrastructure that enhances connectivity within our regions and among BRICS member states. This encompasses financial connectivity as well as transport and logistics linkages,” the Deputy Prime Minister stated.
Alexei Overchuk spoke about Russian investments in the International North-South Transport Corridor, projects in Iran and Central Asia to establish linkages with the Global South – “the centre of the world economy.” “We realise that the centre of the world economy has been shifting to the Global South and will continue to shift for many reasons. It is of vital importance for us to maintain connectivity with the Global South and to provide the necessary support for linking Russia, the northern part of Eurasia, with the Global South. This is a key priority for our Government, and we believe that the New Development Bank should also focus on this,” he noted.
The Deputy Prime Minister said that, within the BRICS framework, Russia has proposed alternative insurance and rating mechanisms to enhance economic resilience. “When conducting transactions and settlements, we understood that we needed our own insurance systems. Russia proposed this within BRICS not as a replacement, but as an alternative for greater resilience of our economies. Similarly, the resilience of economies would increase if we had our own rating agencies,” Alexei Overchuk observed, further noting that the international rating agencies withdrew from the Russian market, and the domestic financial sector developed alternative arrangements. As with insurance, independent or alternative rating agencies are essential for the effective operation of national economies and for cost reduction.
Concluding his remarks, Alexei Overchuk touched upon global challenges such as climate change, water scarcity, and food security. Russia, endowed with substantial resources, stands ready to export food and fertilisers, particularly to the neighbouring Central Asian region.
“We see the problems of climate change, especially in Central Asia. The Bank must be open to projects on the more efficient use of water in regions where it is scarce. This is of critical importance for people’s well-being,” the Deputy Prime Minister stated.
A further priority for the Bank is the development of expertise in, and the analysis of, global trends and their impact on member countries, alongside the provision of feedback to the Bank’s governors and staff. Alexei Overchuk urged the NDB to enhance its analytical capabilities and support pertinent initiatives. He recommended that the governors be more resolute in formulating the Bank’s new development strategy, emphasising that robust decisions must be grounded in expert analysis.
