BRICS: Expansion

Tehran wants into the BRICS bank while at war and under sanctions — a stress test for an institution that promises an alternative to Western finance but still borrows in dollars.

The NDB headquarters in Shanghai. (Photo: Wikimedia Commons)

What Iran Actually Announced

Speaking to state media around the first BRICS finance ministers and central bank governors meeting under India’s chairmanship, Hemmati said in a report published August 12 that the most important result of BRICS cooperation is the New Development Bank, and that Iran will soon become a member. The NDB’s own communications division, asked by Reuters on August 13, said it could not confirm the information.

The distinction matters. Iran joined the BRICS political grouping in 2024 — but BRICS membership does not confer a seat at the bank, which has its own accession track, capital subscription and shareholder votes.

For now, Tehran’s move is a stated intention, not an institutional fact.

Ten Members, One Open Door

The bank was established in 2015 by the five BRICS founders — Brazil, Russia, India, China and South Africa — which shared the initial capital equally; authorized capital stands at US$100 billion. It then expanded deliberately: Bangladesh and the United Arab Emirates joined in 2021, Egypt in 2023 and Algeria in 2025, and on June 5, 2026, Uzbekistan became the tenth member and the first from Central Asia.

Formally, the door is wide: the bank says membership is open to all UN member states, whether they intend to borrow or to join as non-borrowing shareholders. In practice, accession requires signing the Articles of Agreement, subscribing capital and accepting governance terms — a process measured in years, not weeks.

BRICS leaders in Rio de Janeiro in July 2025 — the bloc’s bank is expanding faster than the bloc itself. (Photo: Wikimedia Commons)

The Dollar Problem at the Heart of the BRICS Bank

Iran’s candidacy lands on the bank’s central tension. The NDB positions itself as an alternative channel for emerging-market finance, and BRICS members increasingly trade in national currencies.

Yet the bank raises much of its money on international capital markets — including dollar bonds — and its credit rating depends on that access.

The precedent is explicit: after Russia’s 2022 invasion of Ukraine, the NDB put new transactions in Russia on hold, shielding its standing in the markets where it borrows. Iran, under sweeping US and international sanctions and without a peace deal to end its war with the US and Israel, would test the same boundary from the other side — a sanctioned member asking a market-funded bank for financing.

What to Watch

Three signals will show whether Iran’s claim is real: a formal application or signed accession agreement; an NDB statement beyond its current no-confirmation; and any capital-subscription terms published by the bank. Until then, the mid-August headline is a diplomatic gesture — aimed as much at Washington and at BRICS partners as at the bank’s board in Shanghai.

Frequently Asked Questions

What is the New Development Bank?

The NDB is a multilateral development bank established in 2015 by Brazil, Russia, India, China and South Africa, headquartered in Shanghai with US$100 billion in authorized capital. It finances infrastructure and sustainable development projects in emerging markets and developing countries.

Which countries are members of the NDB in 2026?

Ten members: the five founders — Brazil, Russia, India, China, South Africa — plus Bangladesh, the United Arab Emirates, Egypt, Algeria and Uzbekistan, which joined as the tenth member on June 5, 2026, the first from Central Asia.

Is Iran a member of the BRICS bank?

No — Iran’s central bank governor said in a state media report published August 12, 2026 that the country will soon join, but the NDB told Reuters it cannot confirm an accession, and Iran appears on neither the member list nor the bank’s prospective-member list. BRICS membership, which Iran has held since 2024, does not automatically include the bank.