BRICS nations (Brazil, Russia, India, China,
and South Africa), July 14-16 in Fortaleza, Brazil 2014
I. New Credit Institutions
NDB: BRICS New Development Bank and Contingent Reserve Arrangement:
The Fortaleza Declaration includes the historic announcement
that the BRICS nations agreed to form the New Development
Bank (NDB) to fund infrastructure and other development projects in
BRICS and other developing economies. The bank is to be headquartered
in Shanghai, China, with the first (rotating) six-year presidency
held by India.
The BRICS Contingent Reserve Arrangement (CRA), with an
initial size of $100 billion, is aimed to “help countries forestall shortterm
liquidity pressures.” It is intended, furthermore, to strengthen
the global financial safety net and complement existing international
China-CELAC Cooperation to Fund Infrastructure Development:
The July 17 meeting of heads of state and special representatives
of the Community of Latin American and Caribbean States (CELAC)
The New Silk Road Becomes the World Land-Bridge
I: 12 Part 1: Introduction
Brazil and China, current
members of CELAC’s leadership Quartet (Costa Rica, Cuba, Ecuador,
and Antigua and Barbuda), and representatives of all of the
rest of South America attended. They agreed to found a China-Latin
American-Caribbean Forum, with a mandate to draw up a 2015-19
Chinese-Latin American-Caribbean Cooperation Plan.
President Xi proposed ; a preferential
credit line for CELAC, from a Chinese bank, which could be as
large as $10 billion; and a Sino-Latin American-Caribbean Cooperation
Fund of $5 billion for investment in areas as yet to be defined.
On July 15, Russian President
Vladimir Putin announced in Brasilia plans to establish a BRICS “energy
association,” which will include a nuclear fuel reserve bank and
an energy policy institute.
South and Central America
Nicaragua Canal: On July 7, Nicaraguan President Daniel Ortega
announced the route of the Great Inter-Oceanic Canal,
connecting the Pacific and the Caribbean,
Russia-Nicaragua Cooperation: supplying agricultural equipment to
that country, the installation of the Russian GLONASS system
(space-based global satellite navigation system similar
to GPS), and cooperation in other areas.
including one for the modernization of the port of Mariel,
the construction of a state-of-the-art airport, the construction
of four power units at the Maximo Gomez and East
Havana thermal power plants, and exploration for offshore
Russia-Argentina Expanded Cooperation: Putin signed
energy, aerospace, agriculture, communications, and
military cooperation agreements with President Cristina
Fernández de Kirchner. Of particular importance were the
IAEARussia and Argentina have agreed to cooperate on
building more nuclear power plants in Argentina.
Rosatom has submitted a technical and commercial proposal to participate
in the construction of Argentina’s Atucha III nuclear plant.
Peru-Brazil Transcontinental Railroad:
China, Brazil, and Peru agreed to initiate feasibility studies on the construction of
a transcontinental rail line linking Brazil’s Atlantic Coast with Peru’s
Pacific Coast. China may support: the Brazil-Peru Transoceanic
Railroad, which is fundamental to South American integration and an
outlet for Brazilian exports to Asia.” This Lucas do Rio Verde-Mato
Bolivia has also asked China for help in developing the Bolivian
portion of an alternative transcontinental rail route Brazil-Bolivia-
China-Cuba Cooperation: Twenty-nine agreements for energy,
transportation, science, agriculture, telecommunications, and infrastructure
development were signed between Cuban and Chinese officials
during President Xi’s July 23-24 visit to the island. Key among
these was the credit line for construction of a multi-purpose terminal
at the port of Santiago de Cuba, a framework agreement for participation
by the Chinese National Oil Company in development of the
Seboruco oil deposit, and a Memorandum of Understanding (MoU)
signed by both nations’ Industry Ministries for developing Cuba’s industrial
Russia-Bolivia Nuclear, Infrastructure Development Cooperation:
Representatives from Russia’s Rosneft oil firm will visit Bolivia to
discuss investment in Bolivian oil projects.
China-Bolivia Satellite Cooperation:g Bolivia’s second
satellite. China’s Great Wall Industry Corporation built Bolivia’s first
satellite, Tupac Katari,
Brazil-Russia Trade, Military, Nuclear Cooperation: doubling trade between their two coun-
tries, to $10 billion a year. The seven bilateral agreements include an
anti-air defense system, under which the Brazilian military will participate
with the Russian military in the use of Russia’s Pantsir-S1 surface-
to-air defense system, which the Brazilians are interested in purchasing,
and an agreement to expand facilities for Russia’s GLONASS
satellite navigation system in Brazil.
Russian nuclear representative Dzhomart Aliev and
Brazilian company Camargo Corrêa signed an MoU to expand bilateral
cooperation in nuclear power.
MoU.Brazil-China Infrastructure Development, Scientific and Military
Cooperation: projects for the construction and financing
of infrastructure inside Brazil; deepening their space cooperation,
including joint satellite work with Africa; the sale of Brazilian jets to
China; intensified scientific and educational exchanges; and Chinese
construction of Brazil’s Rio Tapajos hydroelectric project.
They plan to move ahead with their China-Brazil Earth Resources
Satellite (CBERS) program
Argentina-China Infrastructure Development, Nuclear Cooperation:
. Nineteen agreements weresigned in the areas of nuclear energy, infrastructure, communications,
transportation, and agriculture; they included $4.7 billion in financing
for the Néstor Kirchner-Jorge Cepernic hydroelectric complex in
Santa Cruz, a $2.5 billion credit for renovation of the Belgrano Cargas
railroad, and an $11 billion currency swap agreement between the
two central banks. On Sept. 2, in Beijing, the head of China’s National
Nuclear Corporation (CNNC) and the head of Argentina’s Nucleoeléctrica
Argentina, SA signed a $2 billion agreement by which China will
provide preferential financing for Argentina’s fourth nuclear reactor,
the 760-MW Atucha III.
China-Mexico Nayarit Port and Rail:
Governor of Chihuahua, Mexico, announced that the Development
Bank of China will provide $1 billion to finance the Nayarit-Chihuahua-
New Mexico rail project, with construction to start by the end of
2014. This rail line is part of what is termed Mexico’s “Economic Corridor
of the North,” and features construction of Puerto Nayarit, which,
when completed in some three years, will be the largest deepwater
port in Ibero-America.
China-India Joint Economic Projects: President Xi and Indian Prime Minister Narendra
Modi concluded more than 10 significant economic deals, and
pledged to settle long-standing border disputes. Among the projects is
collaboration in nuclear science, particularly in developing thoriumfueled
nuclear reactors. India plans a 300-MW thorium prototype by
2016, to then scale up. China is working on a pebble-bed solid fuel 100-
MW demonstrator reactor by 2024, for full deployment by 2035.
Commitments were signed for a faster railroad between Musore City
and Chennai via Bengaluru, to allow more of India’s pharmaceuticals
into China, and other initiatives.
Talks took place on the Bangladesh-China-India-Myanmar trade
corridor, which would link the Indian port of Kolkata with Kunming,
Russia-North Korea-South Korea Development Project: On
July 18, Russian, North Korean, and South Korean officials opened the
port of Rajin, a state-of-the-art port, built by Russia, connecting to the
recently completed rail line from Rajin, North Korea to Russia.
Russia-China Nuclear Cooperation:
the export branch of Russia’s Rosatom nuclear company,
Rosatom Overseas, signed an MoU with China,
to bring the two nations closer to the joint development
of floating nuclear power plant (FNPP) technology.
Russia is moving toward completion of the first
of what will be a fleet of small, marine nuclear energy
reactors to be placed on barges for civilian power and
desalination. Six of these FNPP units are part of the
Russia-India talks. Rosatom Overseas chief executive
Dzhomart Aliev said that these small reactors can
provide “a reliable power supply, not only to remote
settlements but also to large industrial facilities such as oil platforms.”
Russia-China Siberian Gas Lines: launching construction
on the first section (the China-Russia East Route) of a 4,000-
km pipeline, the “Power of Siberia,
Russia announced that a new China-Russia West Route gas pipeline deal, to
provide a 30-year gas supply to China, will be signed in November.
Moscow-Kazan High-Speed Rail Project: Russian Railways on
July 31 announced that negotiations are underway with Chinese investment
and construction companies about a partnership to construct
a high-speed rail line between Moscow and Kazan.
India to Receive High-Speed Trains from Japan:
Indian Prime Minister Narendra Modi o signed an
agreement with Prime Minister Shinzo Abe in Tokyo, whereby
India will receive Japanese financial, technical, and operational
support to introduce Bullet trains. Abe also pledged
that Japan would invest $35 billion during the next five years,
doubling its investments in both India’s private and public
India and Nepal signed an agreement for Indian infrastructure
builder GMR to construct a 900-MW hydropower project on
Nepal’s Karnali River.
Russia Supports India and Pakistan Membership in Shanghai
Cooperation Organization: The SCO intends to makdeIndia and
Pakistan full members at its summit 2017
As reported in the Daily Times of Pakistan, China and ASEAN
(Brunei, Thailand, Singapore, Cambodia, Laos, Indonesia, Malaysia,
the Philippines, Vietnam, and Myanmar) reached an agreement
to deepen their strategic partnership, including joint work on China’s
21st Century Maritime Silk Road, and projects in the Mekong River
development area. China also welcomed all 10 ASEAN nations to join
in the Asian Infrastructure Investment Bank as founding members.
Thailand has already accepted that invitation. -
with 80 nations joined up by Jun2 2017
Maritime Silk Road—China-ASEAN Expo in Nanning: The 11th
annual China-ASEAN Expo (CAEXPO) Sept. 16-19 was held in Nanning,
the capital of Guangxi Province, on the theme, “Jointly Building
the 21st Century Maritime Silk Road,” with 4,600 exhibitors. Of these,
1,259 were from the 10 ASEAN countries, for which trade with China
is expanding at a rate of 10% a year.
New Southeast Asia Large Dam—Salween River: On Sept. 16,
China’s Three Gorges Dam Corporation signed a contract with Myanmar’s
IGE Company to build Southeast Asia’s largest dam, on the
Thanlwin (Salween) River.
BRICS Young Scientists Forum: Indian Prime Minister Modi
proposed such a forum during his July 15 speech in Fortaleza. The Forum would set up schools “to offer language
training in each of our languages,” exploring the creation of a BRICS
China-Singapore Economic Corridor: Mayors of cities along the route
reached a consensus on the initiative at their meeting, which took place
alongside sessions on related aspects of the New Maritime Silk Road,
held at the China-ASEAN Expo annual meeting, 2015? in China’s
Guangxi Zhuang autonomous region, a gateway to Southeast Asia.
The concept is that the rail, highway, and development corridor
starts from Nanning and Kunming in China, going south through
the Indochina peninsula, connecting China, Vietnam, Laos, Cambodia,
Thailand, Malaysia, and Singapore. Thailand and China have approved
the construction of rail lines connecting Bangkok to the north/
northeast of Thailand, part of the larger China-Singapore Corridor.
China is in negotiations with Laos to construct the Laotian portion of
Russia-Egypt Trade Expansion: Following the meeting between
Russian President Putin and Egyptian President Abdel Fattah
el-Sisi in Sochi, Russia, on Aug. 12, Russian-Egyptian cooperation is
expanding. A particular focus of the meeting was trade in food products.
Putin also expressed readiness to support Egypt’s construction of
a nuclear power plant at Dabaa.
South Africa Deals with Russia: On Aug. 28, President Jacob
Zuma met Russian President Putin in Novo-Ogaryovo, on the outskirts
of Moscow, for an agenda topped by trade and investment. Russia
offered assistance for a comprehensive nuclear energy industry in
South Africa, in light of President Zuma’s June announcement that
South Africa will greatly expand its nuclear program.
South Africa-China Steel Mill Project: On Sept. 12, South Africa
Trade and Industry Minister Dr. Rob Davies confirmed that the Hebei
Iron and Steel Group of China will jointly develop steelmaking capacity
with the South Africa state-owned Industrial Development Corporation
(IDC), in Limpopo Province, near Phalaborwa, where there are
large magnetite deposits. Construction is to start in 2015. The initial
goal is 3 million tons a year, with 5 million tons, mostly construction
grade, by 2019.
President Xi met
Zimbabwe President Robert Mugabe in China. They signed a number
of cooperation agreements.
India-South Africa Agriculture: In a statement on Sept. 11, South
Africa Agriculture Minister Senzeni Zokwana urged South African
farmers to take advantage of the BRICS development bank, including
in food processing and farming. His comments came during the firstever
Indo-South Africa Week in India. The week-long seminar began
in Mumbai on Sept. 9-10, then moved to Gurgaon on Sept. 11-12. South
Africa showcased technologies related to food processing and the agriculture
sector. Zokwana met with India Minister of Agriculture Shri
Radha Moodan Singh on BRICS financing of farm and food projects.