Putin Seeks Independent SCO Bank for India, China and Allies
What Happened
At the 2026 Shanghai Cooperation Organisation (SCO) Summit in Bishkek, Russian President Vladimir Putin proposed creating an SCO Development Bank that would operate independently of financial systems dominated by the US and its allies. The proposed bank would finance long-term infrastructure, energy, transport and cross-border projects among SCO members, including India, China, Russia, Pakistan, Iran and Central Asian nations. Putin said the move is aimed at reducing dependence on the US dollar and Western-controlled financial networks.
Key Takeaways
The proposal reflects a broader push by Russia and some SCO members to expand trade and financing in national currencies and develop alternative financial mechanisms that are less vulnerable to Western sanctions. However, the bank remains a proposal, and its creation would require support from other SCO members.