Russia is pushing for the creation of a new cross-border payment system for Brics countries as part of a scheme that would help the country to evade financial sanctions and reduce its reliance on the US dollar.

A report on the proposal was published ahead of an annual Brics summit that will be held next week.

Brics members include Brazil, Russia, India, China, South Africa, Iran, the United Arab Emirates, Ethiopia and Egypt.

The report prepared by the Russian Finance Ministry, the Bank of Russia and Moscow-based consultancy Yakov & Partners floats the development of a network of correspondent banks to conduct cross-border transactions in local currencies, the establishment of direct links between central banks, the creation of centres for mutual trade in commodities, and the use of distributed ledger technology or a new multinational platform for settlements with tokens.

The new system would “ring-fence its participants from any external pressures such as extraterritorial sanctions”, the report said.