Two agricultural companies from Russia and Pakistan have signed an agreement for barter trade, exchanging rice, oranges, and potatoes for chickpeas and pulses from Russia.
According to a report by the foreign news agency Reuters published in Dawn, Russia has been facing payment system issues due to Western sanctions following the Ukraine conflict in February 2022. As a result, Moscow is promoting a barter system.
The Russian news agency reported that the Russian firm Strata Agro Trading has agreed to supply 20,000 tons of chickpeas in exchange for 20,000 tons of rice from Pakistan’s Miskin and FMT Trading Company.
Under this agreement, Strata has also agreed to provide 15,000 tons of chickpeas and 10,000 tons of pulses in exchange for 15,000 tons of oranges and 10,000 tons of potatoes.
Both companies have refrained from commenting on the agreement.
According to TASS, during the Pakistan-Russia Trade Forum in Moscow, a Pakistani official stated that Russia and Pakistan are facing specific challenges in mutual payments, prompting both companies to decide to initiate barter trade.
Due to an increase in bilateral trade, payment issues with China have become a particular concern for Russia. Sources told Reuters in August that the first agricultural barter deal between Russia and China would take place this autumn.
In February, the Russian Ministry of Economy published a document outlining the procedures for Russian companies to engage in barter transactions, along with measures to mitigate risks.
Sources in payment markets informed Reuters that barter deals with China are now occurring, but these are being conducted at the level of individual companies.
