Moscow: According to a report published on Tuesday by Russia’s TASS news agency, two agricultural businesses from Pakistan and Russia have agreed to barter rice, potatoes, and mandarins for the exchange of chickpeas and lentils from Russia.
Moscow is exploring barter agreements that eliminate the necessity for cash exchange, lessen the visibility Western nations have over its trade flows, and lower currency risk as a result of Western sanctions stemming from Russia’s invasion of Ukraine in February 2022.
According to TASS, Pakistan’s Meskay & Femtee Trading Company agreed to sell 20,000 tonnes of rice to Russian company Astarta-Agrotrading in return for 20,000 tonnes of chickpeas.
Astarta also committed to provide 10,000 tons of lentils and 15,000 tons of chickpeas in exchange for 10,000 tons of potatoes and 15,000 tons of mandarins under a different arrangement.
Requests for comments were not immediately answered by the two businesses.
According to TASS, a Pakistani official stated, “Russia and Pakistan are experiencing specific difficulties in carrying out mutual payments,” outside of a commercial event in Moscow between the two countries. As a result, the two businesses made the decision to start a barter trade system.
With the rise in bilateral trade, Russia faces a special problem with China: payment concerns. Sources told Reuters in August that the first agriculture barter deals between Russia and China would emerge this autumn. In February, the Russian Ministry of Economy released a document that offered guidance to Russian businesses about barter transactions, including tips on how to avoid potential hazards.
Reuters was informed by a source in the payment markets that individual corporations were now engaging in barter transactions with China.
