Moscow (TDI): Two agriculture firms from Pakistan and Russia have inked barter deals to exchange chickpeas and lentils for rice, mandarins, and potatoes.
As Russia grapples with payment issues stemming from Western sanctions following its invasion of Ukraine in February 2022, it is increasingly turning to barter agreements to bypass financial transactions.
This approach not only reduces the visibility of trade flows to Western nations but also mitigates currency risk.
Under one agreement, Russian firm Astarta-Agrotrading will supply 20,000 tonnes of chickpeas in exchange for 20,000 tonnes of rice from Pakistan’s Meskay & Femtee Trading Company.
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In another deal, Astarta will provide 15,000 tonnes of chickpeas and 10,000 tonnes of lentils in return for 15,000 tonnes of mandarins and 10,000 tonnes of potatoes.
A Pakistani official commented on the situation, noting that both countries have faced difficulties in conducting mutual payments, which prompted the launch of the barter trade mechanism.
This trend is also reflected in Russia’s growing trade relationship with China, where sources indicate that agricultural barter deals are expected to commence this autumn.
In February, Russia’s economy ministry advised companies on navigating barter transactions, highlighting potential pitfalls.
Also Read More: Pakistan-Russia Trade, Investment Forum Begins in Moscow
As these agreements unfold, they underscore a broader shift toward non-monetary trade solutions, allowing countries to maintain commerce despite geopolitical challenges
