Both countries are looking for ways to create more efficient trade systems. In light of ongoing payment challenges due to Western sanctions, Russia has introduced a barter trade agreement with Pakistan involving various agricultural products.
This new system was established at the inaugural Pakistan-Russia Trade and Investment Forum in Moscow, allowing for the exchange of goods without monetary transactions.
According to The Moscow Times, the Russian firm Astarta-Agrotrading will export 20,000 tons of chickpeas to Pakistan in exchange for an equal amount of rice, along with additional supplies of mandarins and potatoes. Pakistan’s Deputy Commerce Minister Nasir Hamid noted that this barter arrangement addresses the “difficulties with mutual payments.”
As monetary transactions face increased scrutiny due to sanctions following the invasion of Ukraine, barter agreements offer a way to navigate these obstacles. Previous attempts at barter trade, particularly with China, have seen slow progress. Nonetheless, both nations are exploring options to establish more effective trade systems, including the upcoming BRICS Bridge payment system, which is expected to be operational by 2028.
This initiative reflects a return to barter practices that were common between Russia and China before the Soviet Union’s collapse, underscoring ongoing efforts to adapt to the complexities of international trade amid heavy sanctions.
