The Minister of Finance of Russia and Chairman of the Board of Governors of the New Development Bank (NDB), Anton Siluanov, announced in May that by 2031, the share of NDB projects financed in local currencies will exceed 45%. At the bank's annual meeting, he noted that this figure currently stands at 30%.
This course aligns with the bank's core mission. The NDB, based in Shanghai, was established in 2015 by Brazil, Russia, India, China, and South Africa to mobilize resources to support sustainable development and infrastructure projects in Global South countries.
A recent example is REC Limited, an Indian state-owned company, which received a loan from the NDB to build renewable energy power plants, consistent with the country's strategy to phase out fossil fuels and develop clean energy.
Researcher Wang Yuimin of the Chinese Institute of International Studies suggested that more active use of local currencies in trade, investments, and reserves could reduce developing countries' dependence on the US dollar. Furthermore, it could protect economies from external shocks, strengthen financial autonomy, and mitigate the effects of politically motivated sanctions.
By June 2026, the NDB approved 139 projects totaling approximately $42.9 billion. According to the lender, these projects contributed to increasing clean energy capacity by 2,400 megawatts, reducing carbon dioxide emissions by 14.7 million tons annually, and supporting the construction of 35,000 housing units, 43 schools, 1,400 kilometers of tunnels and canals, and 40,400 kilometers of roads.
In Brazil, a project for water supply and sanitation in the state of Pará aims to protect drinking water, reduce pollution, and restore ecosystems. In India, a regional high-speed transport system project connecting Delhi-Ghaziabad-Meerut is intended to improve public transport, reduce congestion, and promote low-carbon mobility.
In addition to green infrastructure projects, the NDB is developing new financing instruments to address long-standing issues such as limited access to capital and exchange rate volatility.
The NDB is not the only BRICS mechanism strengthening financial stability. The BRICS Contingent Reserve Arrangement (CRA), established in 2015 with an initial reserve fund of $100 billion, serves as a financial safety net for members facing short-term balance of payments pressure. China provides 41% of the resources of this mechanism, supplementing existing global security systems with an additional crisis response tool for BRICS nations.
The NDB is also expanding its activities beyond physical infrastructure. Uzbekistan became the tenth member of the NDB in June. Roman Sherov, Vice President of the NDB, stated that the bank will integrate digitalization and artificial intelligence into its investments, focusing particularly on AI-based digital finance over the next five years.
Ahead of the 18th BRICS Summit in New Delhi this weekend, Lucas Enriquez Rocha, Coordinator of the BRICS Research Group at the University of São Paulo, told TV BRICS that the event could serve as a platform for exchanging ideas and creating new partnerships in areas such as AI protection, green finance, and digital payment infrastructure.
From local currency loans to AI, the NDB is betting that the future of development is in the hands of the Global South itself.