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12 I Companies & Markets bne August 2023
Eurasian leaders seek to boost regional trade at SCO summit
bne IntelliNews
Iran became the ninth country to join the Shanghai Coopera- tion Organisation (SCO) at a virtual summit of the regional alliance on July 4 that emphasised regional stability and developing trade links. The SCO is set to expand further, as Belarus too is currently preparing to become a member.
At the summit of the SCO – which includes regional heavy- weights China, India and Russia as well as Pakistan and several Central Asian republics – leaders talked of strengthening bonds and enhancing co-operation within the alliance.
The event, hosted by India as the current holder of the SCO’s rotating chair, comes as key members of the alliance seek to expand its scope and counter Western influence in Eurasia.
Iran’s accession to the SCO was formally announced by India's Prime Minister Narendra Modi. Iran, which is under Western sanctions, has been gradually emerging from international isolation and building ties with Russia and China.
Modi told the event that new countries joining the SCO underlines its importance. Kazakhstan’s President Kassym- Jomart Tokayev also commented on the expansion of the organisation. “The SCO’s step-by-step expansion proves its growing role and attractiveness of our multifaceted mutually beneficial co-operation,” he said, according to the Kazakh presidential website.
Putin back on the world stage
The virtual event was notable for being Russian President Vladimir Putin’s first appearance at an international forum since the failed mutiny led by Yevgeny Prigozhin, the head of the Wagner mercenary group.
Addressing the summit, Putin emphasised Russia’s stability and unity, and also stated Moscow's intention to strengthen ties with the SCO.
He asserted Russia's determination to counter Western pres- sure and sanctions, and doubled down on his rhetoric to justify the invasion of Ukraine last year.
www.bne.eu
The latest SCO summit was hosted by India as the current holder of the SCO’s rotating chair. / sectsco.org
The SCO is important for Russia, which considers China, India and Iran as some of its most important partners in its strategy of building alliances with the Global South and challenging the Western-centred world order.
He referenced this in his address to the conference, comment- ing: “Our organisation is strongly committed to creating
a truly just and multipolar world order, an order based on international law and common principles of mutually respect- ful co-operation between sovereign states with the central, co-ordinating role of the United Nations.”
China's Xi calls for regional peace
Chinese President Xi Jinping, meanwhile, stressed the need to protect "regional peace”. Xi called for joint efforts to ensure common security, highlighting the shared responsibility to achieve long-term stability.
“Iran, which is under Western sanctions, has been gradually emerging from international isolation and building ties with Russia and China”
He pledged to promote political solutions for pressing international and regional issues, contributing to the establishment of a strong regional security framework.
“Achieving long-term regional peace and stability is our common responsibility,” Xi said, according to Chinese state broadcaster CCTV.
Many of his comments were focused on global trade and investment. He stated China's opposition to protectionism, and reaffirmed its commitment to economic globalisation.