New Era for Russia-Ethiopia Relations as Defense, Currency, and BRICS Deals Unfold

Date: May 22, 2025

A new strategic partnership is emerging between Russia and Ethiopia, as both countries deepen cooperation through a series of defense, currency, and economic agreements under the broader BRICS alliance.

Defense and Military Cooperation Intensifies

This week, Russian and Ethiopian officials signed a landmark military cooperation agreement during a summit in Moscow. The deal includes provisions for intelligence sharing, joint training programs, and the supply of defense equipment to Ethiopia, signaling Moscow’s increased interest in Africa’s security dynamics.

Currency and Financial Agreements

In a bold move to de-dollarize bilateral trade, Russia and Ethiopia have agreed to begin settlements using local currencies—namely the Russian Ruble and Ethiopian Birr. The deal will be facilitated through new central bank protocols and a BRICS-backed financial framework intended to reduce dependency on Western financial institutions.

BRICS Economic Framework Expands

As Ethiopia prepares for deeper BRICS integration, it has signed preliminary agreements to join the BRICS Development Bank. The country expects to receive support for infrastructure and energy projects while expanding trade with member nations such as Brazil, India, China, and South Africa.

Diplomatic Significance

This strategic shift in foreign policy comes amid growing dissatisfaction among African nations with traditional Western partners. Russia, leveraging its diplomatic strength and BRICS platform, is presenting itself as an alternative source of investment, technology, and defense support.

Reactions from Global Stakeholders

While Ethiopian officials hailed the agreements as a turning point, Western observers have voiced concern about Moscow’s growing military and economic footprint in the Horn of Africa. Analysts warn that the West may seek to counter these moves through new diplomatic or trade policies in the region.

Outlook and Next Steps

The Ethiopia-Russia partnership is expected to expand further in 2025, with future plans to collaborate on nuclear energy, cyber defense, and educational exchanges. Russia has also proposed the construction of a BRICS regional headquarters in Addis Ababa to coordinate African projects.

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