Two agriculture companies from Russia and Pakistan have initiated barter agreements to exchange chickpeas and lentils from Russia for rice, mandarins, and potatoes.
Moscow is facing payment challenges due to Western sanctions imposed after Russia’s 2022 invasion of Ukraine. To address these challenges, Moscow is now engaging in barter transactions. These arrangements eliminate the need for monetary exchange, reduce Western countries’ oversight of Russian trade activities, and minimize currency exposure.
A contract detailed by TASS has Russian firm Astarta-Agrotrading committing to deliver 20,000 tonnes of chickpeas to Pakistan’s Meskay & Femtee Trading Company in return for an equal amount of rice.
Another agreement involves Astarta supplying 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 from the Pakistani side.
The two companies have yet to respond to requests for comment.
A Pakistani official, speaking at a Pakistan-Russia trade forum in Moscow, was quoted by TASS stating, “Russia and Pakistan face particular challenges with mutual payments, prompting the initiation of a barter trade mechanism.”
Payment difficulties also affect Russia’s trade with China, where bilateral trade volumes are increasing.
