Reuters: Sanctions have revived barter trade in Russia. In the 1990s, it wreaked havoc on the economy
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For the first time since the 1990s, barter in foreign trade is gaining momentum in Russia as companies seek to circumvent Western sanctions. About writes Reuters.

The agency notes that the return of barter to Russian foreign trade indicates problems with foreign currency payments after Russian banks were disconnected from SWIFT and the risk of secondary sanctions against Chinese banks.

As a result, companies began exchanging goods directly: for example, Russian grain for Chinese cars or flax seeds for construction materials.

The Russian Ministry of Economy even prepared a "Guide to Foreign Trade Barter Transactions" and proposed to create a special exchange for such transactions.

According to the agency, at least eight such deals have been recorded this year alone. These include the exchange of Russian wheat for Chinese cars, flax seeds for household appliances and building materials, and the supply of metals to China in exchange for equipment.

Analysts say that a possible indicator of the scale of barter is the widening discrepancy between the Central Bank of Russia's foreign trade statistics and the country's customs service, which reached $7 billion in the first half of this year.

One of the deals, made in 2024, was estimated by Reuters sources at about $100,000.

The agency emphasizes that in the 1990s, barter in Russia led to chaos in the economy and numerous price frauds.

Although the official customs service of the Russian Federation claims that barter transactions account for a "small share" of total trade, experts believe that their volume will grow.

  • In August 2024, it was reported that Russia and China discuss barter trade agreements to help bypass the US-controlled SWIFT international banking system and limit currency risks.
  • In October of the same year, it became known that the Russian company Astarta-Agrotrading and the Pakistani Meskay & Femtee Trading Company launched a barter trade mechanism.