Russian President Vladimir Putin said BRICS countries are actively using national currencies in international settlements, cutting trade costs substantially, ANA reported on December 8.

Putin made the comments in the Kremlin with members of the Council of the Parliamentary Assembly of the Collective Security Treaty Organisation – heads of the parliaments of the CSTO member states.

Putin said Russia's economic growth rate will slow from forecast levels this year, speaking at a meeting of the Strategic Development Council and National Projects on December 8 in a meeting.

The growth rate of gross domestic product will reach around 1% by year-end while inflation will be approximately 6% or lower, he said, adding the target is being achieved alongside falling inflation.

The Russian president ordered the immediate implementation of a plan for structural changes to Russia's economy. "Conditions and opportunities have now been created for a gradual increase in economic dynamism whilst maintaining low unemployment," he said, according to ANA.

Putin said his goal for next year is to "clean up the national economy", creating a transparent and competitive business environment. The government has already prepared a programme in this regard, he said.

"It is important to act wisely and not hinder economic growth. Entrepreneurs who manage their businesses responsibly should receive new opportunities for development and tangible benefits from market cleanup. For the government and society as a whole, this impact should include increased budget revenues at various levels," Putin said.

Russia's economy has faced pressure from Western sanctions imposed following its invasion of Ukraine in February 2022, prompting Moscow to deepen economic ties with alternative partners, including BRICS members China, India, Brazil and South Africa.

The Russian president’s comments come as the BRICS group launched a working prototype of a gold-backed trade currency known as the “Unit” in a potential challenge to the US dollar.

The Unit is a digital trade instrument backed by a reserve basket composed of 40% physical gold and 60% BRICS national currencies, equally weighted between the Brazilian real, Chinese yuan, Indian rupee, Russian ruble, and South African rand. The pilot was initiated IRIAS which issued 100 Units on October 31, each initially pegged to 1 gram of gold.

Russia ran trials for the digital ruble earlier this year, testing it in the domestic banking system and also began working with Iran on intra-bank developments including a competitor to Belgium-based SWIFT headquartered out of Tehran.

Iran joined BRICS in January 2024 alongside Egypt, Ethiopia and the United Arab Emirates.