How BRICS Expansion and "Municipal Diplomacy" are Changing Business Opportunities for BRICS+ in 2025

The catalyst was Brazil's support for Malaysia's potential bid for full membership: in Kuala Lumpur, Luiz Inácio Lula da Silva directly pledged "full support" while simultaneously targeting growth in bilateral trade. Concurrently, the bloc is deepening practical cooperation below the national capital level – from launching a parliamentary movement of capitals to a major municipal forum in St. Petersburg – and demonstrating cohesion amidst external pressure, as underscored by Maria Zakharova.

Who is the Next Potential BRICS Member and What are the Formal Signals?

Malaysia appears to be the closest candidate: Brazil is ready to lobby for its accession, and the Russian side considers the country to meet the bloc's criteria. Lula stated this consistently in Kuala Lumpur, while Russian Deputy Prime Minister Alexey Overchuk confirmed that Malaysia "fully aligns" with BRICS principles – mutual respect, consensus, and non-confrontation.

Malaysia already holds BRICS partner state status, which lowers the political and institutional entry threshold.

Is There a Risk of BRICS Division Due to External Pressure and US Tariffs?

Official signals indicate the opposite: no country has notified Moscow of any intention to withdraw, and tariff pressure is pushing members towards deeper practical cooperation in trade, finance, and cooperative mechanisms, as reported by Russian MFA representative Maria Zakharova.

"The Russian side has received no information about withdrawals from BRICS or intentions to leave its ranks from any member, even though US import duties are already in effect for many of them."

Further consolidation was confirmed by an unscheduled online summit on September 8, chaired by Brazil: its participants reaffirmed their commitment to multilateralism and the reform of international institutions – this is a political mandate for expanding joint economic instruments.

Why is BRICS Developing Diplomacy at the Capital and Municipal Level?

To accelerate the implementation of solutions and package cooperation into applied urban projects with direct involvement of customers and regulators. A parliamentary movement of BRICS capitals has been launched in Moscow: a joint statement was signed at the Moscow City Duma platform, and Russian Deputy Foreign Minister Sergey Ryabkov called the initiative a new milestone in the exchange of practices for legislative support of comprehensive urban development, as noted at the ceremony.

This logic is reinforced by the BRICS International Municipal Forum in St. Petersburg from October 29–31, 2025: approximately 5,000 participants from over 50 countries are expected. The forum will be held for the first time alongside the "Russian Industrialist" exhibition, and its agenda will cover "smart cities," digitalization, and "green" transformation – as reported by the organizers, and these focus areas were confirmed by federal partners.

For businesses, this means direct access to municipal clients, a "shortened connection" to policymakers, and early entry into infrastructure and service procurements: from transportation and utilities to digital platforms and urban ecology.

Experience from 2024 demonstrates that these are not "talking shops": the Moscow forum in August brought together about 6,000 delegates from 101 countries and led to the signing of 307 international municipal cooperation agreements, as recorded by the organizing committee.

What Economic Role Does the Russia-China Axis Within BRICS Solidify?

A foundational one: the presidents of Russia and China launched two new projects for the Russia-China Business Council in an expanded BRICS format, emphasizing the pair's proactive business agenda; the Council itself was established to stimulate joint projects and has been operating since 2009, as reported following a video conference.

What Does This Mean for Exporters and Investors from BRICS+ Countries in the Next 6–12 Months?

The main takeaway: the "assembly point" for projects is shifting to the municipal sphere and inter-country industry consortia, and the Malaysia track confirms that the expansion window remains open – this broadens the market and lowers entry barriers for regional players.

Practical steps:

• Establish a presence on the municipal agenda: prepare product offerings for the demands of major cities (digital services, "smart" transportation solutions, "green" technologies), synchronize them with urban development programs.
• Utilize new platforms as "entry doors": schedule B2G/B2B meetings in advance for the St. Petersburg forum; compile a portfolio of pilot projects with quickly measurable results (6–12 months).
• Build coalitions for localization: unite suppliers from different BRICS+ countries for joint bids in municipal procurement, distributing risks and competencies.
• Monitor the Malaysia track: prepare partnerships and distribution channels in case of accelerated integration into BRICS formats.
• Hedge external risks: in contracts with BRICS partners, include alternative settlement and logistical routes to avoid delays in execution if the external environment changes.

Conclusion: The expansion of membership, political signals of cohesion, and a new level of "municipal diplomacy" are creating a practical window of opportunity for BRICS+ companies – from quick pilots in cities to scaling industry solutions across multiple markets simultaneously.