Iran has become a full-fledged member of the Shanghai Cooperation Organization (SCO), a formidable bloc of Eurasian states that’s led by Moscow and Beijing.
Tehran’s accession to the SCO was formalized at a July 4 virtual summit hosted by SCO member India, which currently holds the organization’s rotating presidency.
While addressing participants, Iranian President Ebrahim Raisi voiced hope that SCO membership would provide his country with a “platform for ensuring collective security” and an “opportunity for long-term economic development.”
“Lasting peace and stability is only possible when countries of the [Eurasian] region rely on common ideals arising from their culture and civilization,” he said.
Iran already shares significant ties with leading SCO member states. It’s a primary supplier of oil to China and India and has a “strategic partnership” with Russia.
The formal process for Iran’s accession to the organization began in March of last year. Last October, the Iranian parliament approved the move.
Speaking at the summit, Russian President Vladimir Putin welcomed Iran, which, he said, would “now participate in our organization in a full-fledged format.”
De-dollarization Tops Agenda
In a joint statement issued at the summit’s conclusion, member states stressed their shared desire for “a more representative ... multipolar world order.”The declaration also called for stepped-up cooperation between member states “in the fields of politics and security, trade, economy, finance, and investment, [and] cultural and humanitarian ties.”
It went on to assert that the SCO was “not directed against other states and international organizations, and is open to broad cooperation ... in line with the goals and principles of the UN Charter, the SCO Charter, and international law.”
Nevertheless, the summit saw repeated calls for member states to conduct financial transactions in currencies other than the U.S. dollar.
“The dollar’s hegemony facilitates Western hegemony,” Mr. Raisi told participants.
“It is necessary to abandon [the dollar] and use national currencies in settlements between countries in order to create a new economic system.”
The assertion was echoed by Mr. Putin and Chinese leader Xi Jinping, both of whom urged SCO member states to conduct transactions in their own national currencies.
According to Mr. Putin, more than 80 percent of Russia–China trade is now being conducted in rubles and yuan.
Countering the West
The SCO was founded by Moscow and Beijing in 2001 to counter perceived Western influence in Eurasia. Founding members also include Kazakhstan, Uzbekistan, Tajikistan, and Kyrgyzstan.In 2017, India and Pakistan both joined the bloc—despite their longstanding rivalry—as full-fledged members, bringing the number of SCO-affiliated nuclear powers to four.
Belarus, a key Russian ally, is also on track to become a full member of the organization later this year.
The SCO coordinates its activities with the Collective Security Treaty Organization, a Moscow-led military alliance of six Eurasian countries.
In August, SCO member states are scheduled to participate in joint security exercises in Russia’s central-west Chelyabinsk region.
Along with Mr. Raisi and Mr. Putin, this week’s summit was attended by the leaders of India, China, Pakistan, and the four Central Asian republics.
Putin Reassures Allies
The ongoing conflict between Russia and Ukraine hardly came up for discussion at the event.Nevertheless, Mr. Putin took the opportunity to reassure fellow leaders of his country’s continued stability following last month’s aborted rebellion by the leader of Russia’s Wagner Group.
“The Russian people are consolidated as never before,” he said. “Russian political circles and the whole of society ... responded as a united front against the attempted armed mutiny.”
On June 24, Wagner chief Yevgeny Prigozhin led a short-lived rebellion that had briefly appeared to threaten Moscow. A private military company, the Wagner Group has done much of the frontline fighting in Ukraine.
During the mutiny, the leaders of several SCO member states—including China, Iran, Kazakhstan, and Uzbekistan—contacted Mr. Putin to express their support.
Mr. Putin thanked SCO members who, he said, had voiced support for Moscow’s efforts to “safeguard the constitutional order and citizens’ lives and security.”
‘Very Serious Force’
Headquartered in Beijing, the SCO is the world’s largest regional bloc in terms of population and geographical scope. Its members collectively account for 40 percent of the world’s population, 60 percent of the Eurasian land mass, and a third of global GDP.In March, Saudi Arabia—a key U.S. ally in the Middle East—formally applied to join the SCO as a “dialogue partner.” The move is widely regarded as a first step towards full membership.
Notably, the move came shortly after Tehran and Riyadh agreed to restore diplomatic ties—after years of hostility—in a deal brokered by China.
Saudi Arabia isn’t the only U.S. ally seeking membership in the SCO. Last year, Egypt and Qatar also joined the Eurasian bloc as dialogue partners.
“The roster of SCO dialogue partners has been joined by Saudi Arabia, the United Arab Emirates, the Maldives, Myanmar, Nepal, and so on,” Bakhtiyer Khakimov, Moscow’s special envoy for SCO affairs, said on July 5.
“There are a total of 26 member states and dialogue partners,” Mr. Khakimov was quoted as saying by Russia’s TASS news agency. “It’s a very serious force.”
On the same day, the Afghan Foreign Ministry expressed its desire to participate in upcoming SCO summits.
“The Islamic Emirate of Afghanistan welcomes such meetings ... to ensure regional security and development ... and considers the participation of Afghanistan in such meetings to be within its legitimate rights,” the ministry said via Twitter.
