Russia buddies up with China, other BRICS nations, to launch development bank

Russia and its fellow BRICS nations — Brazil, India, China, and South Africa — launched their New Development Bank ahead of a summit this week in the remote Russian city of Ufa, Reuters reports. The bank is believed to be part of Russian President Vladimir Putin's response to Western-dominated financial institutions like the International Monetary Fund, particularly following the West's sanctions in the wake of the Ukraine crisis. It will primarily finance projects in member nations.

Despite Moscow's optimism, however, some analysts believe that the BRICS bank is still far from reaching its goals, which were first proposed in 2012. China has been late building the bank's headquarters in Shanghai, and Beijing's relations with Moscow are not as developed as Putin would like.

BRICS nations account for a fifth of the world's economic output and 40 percent of its population; the New Development Bank will hold an initial $50 billion in capital. The emerging markets of Turkey, Mexico, Indonesia and Nigeria could join as partners later on, Reuters reports.

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