Both nations are exploring ways to establish more effective trade systems

Amid ongoing payment difficulties due to Western sanctions, Russia has initiated a barter trade agreement with Pakistan involving various agricultural goods.

This new system, established at the first Pakistan-Russia Trade and Investment Forum in Moscow, allows for the exchange of goods without monetary transactions.

According to The Moscow Times, the Russian company Astarta-Agrotrading will export 20,000 tons of chickpeas to Pakistan in exchange for an equivalent amount of rice, along with additional supplies of mandarins and potatoes. This barter arrangement is a response to “difficulties with mutual payments,” according to Pakistan’s Deputy Commerce Minister Nasir Hamid.

This arrangement comes in response to “difficulties with mutual payments,” according to Pakistan’s Deputy Commerce Minister Nasir Hamid.

As monetary transactions face heightened scrutiny due to sanctions imposed after the invasion of Ukraine, barter agreements provide a means to bypass these challenges. Previous attempts at barter trade, particularly with China, have been slow to develop.

However, both nations are exploring ways to establish more effective trade systems, including a BRICS Bridge payment system, expected to be operational by 2028.

This initiative marks a return to barter practices that were common between Russia and China before the collapse of the Soviet Union, highlighting ongoing efforts to navigate the complexities of international trade in a sanctions-heavy environment.

Published Date: October 4, 2024