Barter economics: Russia swaps chickpeas for mandarins

Russia has had to resort to desperate measures to overcome the effects of Western sanctions. According to The Moscow Times, Kremlin authorities are agreeing to a barter trade system.

According to the agreement, Russia will export 20,000 tonnes of chickpeas, while Pakistan will supply the same amount of rice.

Another contract stipulates that Russia will send ​​15,000 tonnes of chickpeas and 10,000 tonnes of lentils in exchange for 15,000 tonnes of mandarins and 10,000 tonnes of potatoes, reported the Russian state news agency TASS.

The unusual trade agreement was reached at Moscow's first Pakistan-Russia Trade and Investment Forum. This marks another step in the Kremlin's endeavour to find allies across Asia.

Russia’s full-scale invasion of Ukraine and the subsequent wave of sanctions imposed by the USA, EU, and the United Kingdom on the aggressor country and key figures in the regime have complicated their previous trading methods.

An alternative agreement permits Russian companies to bypass sanctions and economic control due to the absence of bank transactions.

Russia has already attempted to establish similar relations with China, although implementing plans for a barter exchange of metals and agricultural products proved challenging. Such agreements were previously common between China and the Soviet Union, as both communist states depended on each other for development.

In May, Russian President Vladimir Putin and Chinese President Xi Jinping held a three-day summit, during which countering US sanctions on mutual payments was a key topic of their discussions.

Russia has also strengthened its alliance with Iran, with Western sanctions providing a common ground between both countries. It is believed that Iran played a significant role in supplying Moscow with drones for use on the Ukrainian battlefield when Russian resources began to dwindle.

Source: xpress.co.uk