Western sanctions on Russia have made it difficult for the country to trade in the usual way, so it has made a barter deal with Pakistan. Instead of using money, Russia will now accept mandarins from Pakistan in exchange for rice.
Due to sanctions, Russia is finding new ways to trade. According to the Moscow Times, Russia has set up a system where it exports goods in return for imports. In one deal, Russia will send 20,000 tons of chickpeas, and Pakistan will give an equal amount of rice.
Another deal involves Russia trading 15,000 tons of chickpeas and 10,000 tons of lentils for 15,000 tons of mandarins and 10,000 tons of potatoes, as reported by Russian media outlet TASS.
These deals were made at the first Pakistan-Russia Trade and Investment Forum in Moscow. Russia, facing the challenges of Western sanctions due to its invasion of Ukraine, is looking for new trading partners in Asia.
The sanctions from the US, EU, and UK have made it hard for Russia to trade using regular financial systems. This new arrangement avoids bank transactions and lets Russia bypass sanctions.
Russia has also tried to make similar trade deals with China, though they have had trouble agreeing on terms for bartering metals and agricultural products. In the past, China and the Soviet Union used barter deals to support each other’s economies.
In May, Russian President Vladimir Putin and Chinese President Xi Jinping met to discuss, among other things, ways to get around US sanctions on payments. Russia has also strengthened its ties with Iran, with both countries sharing the experience of being under Western sanctions. Iran has reportedly helped Russia by supplying drones for its war in Ukraine.
