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A Comprehensive Analysis of Iran’s Interests in Joining the Shanghai Cooperation Organization and BRICS
Iran’s formal accession to two major organizations—the Shanghai Cooperation Organization and BRICS—in 2023 and 2024, marked a milestone in the strategy of diversifying international partners and increasing economic capacity against Western pressures. Iran was accepted as a permanent member of SCO on July 4, 2023, and following the “Johannesburg Declaration” on August 24, 2023, officially joined BRICS on January 1, 2024—events that coincided with a noticeable shift in the regional order toward South-South cooperation and a reduction in the hegemonic role of the dollar.
The importance of these two memberships goes beyond political symbolism. BRICS, in its official 2024 documents, emphasizes “expanding the use of national currencies in trade and international financial relations” and developing cross-border payment and settlement infrastructures—a path pursued to reduce the effects of the “weaponization of the dollar” on sanctioned economies. On the other hand, SCO, in its latest leaders’ meetings, has focused on deepening financial cooperation, exploring the establishment of joint credit institutions, and strengthening settlements in national currencies. This trend directly enhances the resilience and capacity of Iran and other member countries to withstand Western financial restrictions.
Foreign trade data also shows that Iran’s focus on Asian markets and BRICS members has accelerated. According to official reports from Iran’s customs, exchanges with BRICS members in the years leading up to formal membership reached tens of billions of dollars, with China, India, and Russia among the main destinations and sources of Iranian trade. This convergence, when combined with trans-Eurasian transport routes and new BRICS financial initiatives, provides a practical framework for reducing sanction costs and diversifying trade and investment flows.
Multipolarization of Global Governance
At a strategic level, Iran’s accession to these two blocs aligns with the emerging discourse of the “multipolarization of global governance”—a discourse that has been explicitly emphasized in SCO and BRICS meetings from 2023 to 2025, encompassing everything from reforming international institutions to alternative financial convergences. From this perspective, Iran’s membership is not merely a reaction to sanctions but an active move to redefine the country’s position within regional power, production, and trade networks; an action whose benefits—from non-dollar settlements to reduced supply chain risks—are now more evident than ever.
This article, relying on official documents from both organizations and up-to-date data, first reconstructs the legal and institutional process of Iran’s membership in SCO and BRICS; it then analyzes specific mechanisms of “rule-based sanction circumvention” (from targeted use of national currencies to integration of payment infrastructures) and, finally, summarizes the opportunities and practical constraints (from gaps in economic governance to challenges in regulatory alignment) for realistic policymaking.
Iran’s Membership in the Shanghai Cooperation Organization (SCO): Ensuring Security and Strengthening Connectivity
Iran’s membership in the Shanghai Cooperation Organization (SCO) represents a significant step toward consolidating the country’s security and diplomatic standing in the Eurasian region. Established in 2001, the SCO’s primary mission is to promote regional peace, stability, and cooperation, while actively combating the “three evils” of terrorism, separatism, and extremism. By joining this bloc, Iran has not only aligned itself with a robust security mechanism but also gained a platform to advance its national and regional security objectives.
A key advantage of this membership is Iran’s access to the SCO Regional Anti-Terrorist Structure (RATS), a permanent body headquartered in Tashkent, Uzbekistan. RATS serves as a vital tool for member states to enhance cooperation against transnational security threats, including terrorism, drug trafficking, and organized crime. Iran’s active participation in this framework enables greater coordination with partner countries such as China and Russia, strengthening Tehran’s ability to influence conflict dynamics while simultaneously addressing shared security challenges. This security cooperation provides a direct strategic benefit by offering a framework for information sharing, joint exercises, and maneuvers—critical for a country located at the intersection of multiple geopolitical fault lines.
Beyond security functions, the SCO also offers valuable political solidarity and diplomatic support for its member states, particularly Iran. The organization’s founding principle of “mutual respect and national sovereignty” closely aligns with Iran’s foreign policy doctrine. This emphasis on non-interference acts as a diplomatic counterbalance to Western pressure and unilateralism. A notable example of this political solidarity occurred at the recent Tianjin summit, where the joint statement of members explicitly condemned incursions into Iranian territory. This stance now serves as a significant demonstration of the bloc’s support for all its member countries. While political unity may not extend uniformly to every issue, it provides the Islamic Republic of Iran with a valuable diplomatic shield on the international stage.
The nature of the Shanghai Cooperation Organization as a pragmatic bloc constitutes a key strategic advantage for Iran. While the SCO is widely seen as a counterweight to Western-led institutions such as NATO and the European Union, it is not a formal military alliance with a collective defense pact. This feature does not indicate a weakness of the organization; rather, it is a deliberate and strategic choice that benefits Iran. A non-military coalition allows Iran to engage in strong security cooperation with major powers like China and Russia without jeopardizing its own interests while simultaneously receiving support in formal military conflicts. This flexible structure is more resilient and inclusive, as it can accommodate members with traditionally divergent interests, such as India and Pakistan. This model of equal cooperation offers a more durable framework for a multipolar world compared to a rigid and confrontational military bloc. By joining this pragmatic and non-confrontational assembly, Iran has created a platform that delivers tangible security and diplomatic benefits while preserving its strategic independence.
The New Silk Road: A Potential Economic Engine
Iran’s full membership in the Shanghai Cooperation Organization opens up a wide range of economic opportunities that are central to the country’s long-term strategy for mitigating sanctions and strengthening economic growth. Economically, the SCO provides Iran access to some of the largest and most dynamic markets in the world, positioning the country as a vital hub along Eurasian trade routes. Iran’s unique geographical location, historically a key hub along the ancient Silk Road, makes it a “natural bridge between East and West.” As an SCO member, Iran can leverage this strategic position to serve as a critical transit center for goods moving from west to east and from north to south across Eurasia. This capacity is further enhanced through active participation in flagship projects of China’s Belt and Road Initiative (BRI), such as the development of Chabahar Port. These infrastructure projects improve land and maritime connectivity, providing tangible tools to overcome the limitations imposed by Western blockades and sanctions.
Membership in the Shanghai Cooperation Organization also opens important doors for investment and trade in strategic sectors. Iran can now more effectively expand its exports of energy and non-oil goods to major economies such as China and India. The organization’s focus on investments in clean energy, technology, and the digital economy provides a pathway for Iran to diversify its economy and move up the value chain. By aligning its sustainable development policies with China’s global leadership in renewable energy, Iran can attract the investment and technology transfer it needs.
The economic benefits of SCO membership go beyond simple trade and investment. The organization is actively working to establish an alternative financial system that reduces dependence on Western institutions and the U.S. dollar. This trend represents a strategic move to counter unilateralism and enhance the resilience of member countries against Western economic pressures. A major step in this direction is the members’ decision to establish a new development bank within the SCO—a financial institution aimed at funding critical infrastructure and development projects across the bloc.
For Iran, this new bank provides a vital source of capital that is not subject to Western sanctions or political leverage. This shift is not limited to sanction circumvention; it also involves actively creating a parallel and new economic structure. By participating in these initiatives, Iran is not merely reacting to Western pressures but is actively and strategically “consolidating its central role” as an economic engine for a multipolar world.
The BRICS Alliance and the Redefinition of Global Economic Governance
Iran’s accession to the BRICS alliance is also a landmark event that significantly enhances the country’s position in the global economic arena. BRICS, which with the addition of Iran and other countries in 2024 now comprises eleven members, has become a powerful force for reforming the global economic governance system. The expanded BRICS Plus bloc now represents a substantial share of the world’s population and economic output, with GDP (PPP) surpassing that of the G7. This economic standing provides the group with the credibility and influence needed to pursue its core objectives of legitimacy, equitable participation, and efficiency vis-à-vis institutions such as the United Nations, the International Monetary Fund, and the World Bank.
This collective influence is manifested in the establishment of alternative financial mechanisms. The New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA) were created to provide new pathways for development financing and liquidity, reducing member countries’ dependence on Western-dominated institutions. For Iran, access to the NDB is particularly valuable, as it can supply crucial capital for upcoming development projects that might otherwise be halted by Western sanctions.
One of BRICS’ main goals, especially with the support of major powers such as Russia and China, is the “de-dollarization” agenda. This movement aims to reduce the dominance of the U.S. dollar in international trade and finance, thereby neutralizing one of the main instruments of U.S. economic coercion. For Iran, this represents a profound advantage. Promoting trade in national currencies within the alliance and developing alternative payment systems, such as the blockchain-based “BRICS Bridge,” directly aligns with Iran’s strategic objective of circumventing U.S. sanctions and stabilizing its own currency. This collective effort to build a new financial architecture demonstrates a committed, long-term challenge to the Western-dominated global financial system, representing a key strategic benefit for Iran.
Economic Indicators
| BRICS | G7 | |
|---|---|---|
| Population | 46% of the world’s total | ~10% of the world’s total |
| GDP (PPP) | >36% of global GDP | ~31% of global GDP |
This table illustrates the significant economic power of the BRICS alliance and its capacity to act as a genuine economic and political counterweight to traditional Western blocs
A Platform for Expanding Diplomacy and International Relations
The BRICS alliance goes beyond being merely an economic bloc; it serves as a “platform for political and diplomatic coordination” for the Global South. For Iran, which has faced significant diplomatic pressure from the United States and Israel on the international stage, BRICS membership provides a credible level of legitimacy and a powerful platform to amplify its voice. This endorsement from a diverse group of major global economies, including India, Brazil, and South Africa, goes beyond the traditional diplomatic support Iran receives from China and Russia. It sends a clear message to opposing parties that Iran can advance without engaging diplomatically with the West and can counter the isolation imposed by Washington and Europe.
BRICS functions as a forum for dialogue and influence across a wide range of global issues. Iran’s participation allows it to actively defend its positions, from condemning Israeli aggression to supporting reforms in global governance institutions. Iran’s ability to express its perspectives, and even provide input on joint statements—such as its stance on the two-state solution for the Israel-Palestine conflict—demonstrates that this platform offers member states a space to present and protect their national interests. This represents a significant diplomatic achievement, as it shows that Iran is a recognized member whose voice is heard and considered.
Including Iran alongside regional competitors, such as Saudi Arabia and the United Arab Emirates, in the expanded BRICS process underscores the alliance’s unique structure and represents a strategic win for regional stability. This bold move, by providing a new and neutral space for dialogue among these countries, complements China’s recent efforts to mediate reconciliation and promote stability in the region, helping to reduce tensions.
Shanghai and BRICS: Different but Complementary
Iran’s decision to pursue full membership in both the Shanghai Cooperation Organization and BRICS creates a powerful synergy that maximizes its strategic influence. At first glance, the two organizations may seem to have overlapping goals, but their primary functions and strategic focuses are complementary. This approach provides Iran with a comprehensive and resilient dual strategy toward global integration.
The Shanghai Cooperation Organization is primarily a regional body focused on physical and security integration across Eurasia. Its main value for Iran lies in its role in regional security cooperation, connectivity through projects such as the BRI, and its emphasis on transit routes and energy security. The organization offers practical solutions for tangible trade, infrastructure, and regional security challenges in Iran’s immediate neighborhood.
In contrast, BRICS is a global forum addressing financial and diplomatic challenges on the world stage. Its core value for Iran stems from its focus on reforming global economic governance, creating alternative financial structures, and providing a platform for diplomatic legitimacy at a global scale. By combining these two strengths, Iran can pursue a highly strategic approach.
| Organization | Strategic Focus | Key Benefit for Iran |
|---|---|---|
| Shanghai Cooperation Organization | Expansion of regional security and connectivity | Facilitates trade and strengthens security, especially regarding emerging challenges |
| BRICS | Global economic governance and financial reform | Provides alternative financial mechanisms and global diplomatic legitimacy |
By participating in both, Iran establishes a comprehensive and resilient strategic solution: it can facilitate physical trade and transit through the SCO networks, while settling transactions and securing financing via BRICS’ alternative financial systems. This integrated approach makes the country’s foreign policy more robust and less vulnerable to disruption in any single domain. Ultimately, this dual membership represents a win-win scenario for Iran’s strategic pivot from Western unilateralism toward a more equitable global order. Successful integration into these blocs could also serve as a model for other countries seeking to enhance sovereignty and reduce dependence on Western-led institutions.
Iran’s Path Toward Effective and Sustainable Global Engagement
Full membership of Iran in the Shanghai Cooperation Organization and the BRICS alliance represents a significant and historic milestone in the country’s foreign policy. The analysis presented in this report confirms that this step is not merely symbolic, but rather a testament to the successful implementation of a long-term strategic vision. This dual strategy has provided tangible benefits that address Iran’s core national interests.
- First, economically, Iran has gained access to broad new markets and alternative financial systems. By leveraging its strategic geographic position in the Shanghai Cooperation Organization and supporting de-dollarization in BRICS, Tehran is moving toward creating a new economic structure resilient to sanctions. This proactive approach has shifted Iran’s position from a defensive and isolated stance to an assertive and integrated one.
- Second, in the security domain, membership in the Shanghai Cooperation Organization has provided a pragmatic framework for advanced counterterrorism coordination and political solidarity. The bloc’s emphasis on respecting the independence and sovereignty of its members and non-interference in their internal affairs offers a vital diplomatic balancing weight against external pressures, allowing Iran to cooperate with major powers while maintaining its autonomy.
- Third, diplomatically, membership in BRICS has effectively revitalized Iran’s international standing, creating a platform for its voice to be heard and its positions to be respected among the world’s leading emerging economies. This inclusion, even amid internal complexities, demonstrates the bloc’s commitment to establishing a more inclusive and consistent global order.
Overall, the Shanghai Cooperation Organization and BRICS play complementary and mutually reinforcing roles. The Shanghai Cooperation Organization provides a regional security and physical framework for cooperation across Eurasia, while BRICS offers a global financial and diplomatic structure for the new world order. By successfully integrating into both, Iran has not only broken its diplomatic isolation but can also position itself as a pivotal and indispensable actor in shaping a new multipolar world.
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References
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https://eng.sectsco.org/documents/
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