Russia Seeks to Establish BRICS Precious Metals Exchange to Ensure Fair Pricing

Russia is in negotiations with other BRICS nations to establish an international precious metals exchange, Russian Finance Minister Anton Siluanov announced on Thursday. The initiative aims to promote fair pricing and boost trade in the precious metals sector, providing an alternative to Western-dominated trading venues.

Siluanov detailed that the proposed mechanism would include the development of price indicators for precious metals, standards for bullion production and trading, and tools for the accreditation of market participants. It would also encompass clearing and auditing mechanisms to enhance transparency and reliability. The BRICS exchange is intended to compete directly with Western trading venues, such as the London Metal Exchange (LME), and facilitate trade despite Western-imposed restrictions, according to Reuters.

Russia, the world's second-largest gold producer, is particularly keen to diversify its precious metals trade routes. Among its key players is Nornickel, a major supplier of palladium with a 40% share in the international market. Western sanctions have restricted the activities of all major Russian gold producers, making the establishment of a BRICS-focused precious metals exchange a strategic move to circumvent these barriers and establish more equitable trading opportunities.

The proposed BRICS precious metals exchange reflects the growing efforts of member nations—Brazil, Russia, India, China, and South Africa—to create parallel financial and trading systems that reduce reliance on Western frameworks. By setting its own price benchmarks and standards for bullion, the group aims to bring transparency and stability to precious metals trading, particularly in light of shifting geopolitical alliances and sanctions regimes.