By Two agriculture companies from Russia and Pakistan have entered into barter agreements to exchange chickpeas and lentils from Russia for rice, mandarins, and potatoes, according to Russia’s TASS news agency on Tuesday.
Amid ongoing payment challenges due to Western sanctions following Russia’s invasion of Ukraine in February 2022, Moscow is increasingly turning to barter deals. These arrangements eliminate the need for payment exchanges, reduce Western visibility over its trade flows, and minimize currency risk.
The Russian firm Astarta-Agrotrading has agreed to supply 20,000 tonnes of chickpeas in exchange for 20,000 tonnes of rice from Pakistan’s Meskay & Femtee Trading Company. In another deal, Astarta will provide 15,000 tonnes of chickpeas and 10,000 tonnes of lentils for 15,000 tonnes of mandarins and 10,000 tonnes of potatoes.
The two companies did not immediately respond to requests for comments. A Pakistani official, speaking at a Pakistan-Russia trade forum in Moscow, noted, “Russia and Pakistan are experiencing specific difficulties in carrying out mutual payments,” which led to the decision to establish a barter trade mechanism.
Payment issues are especially pronounced for Russia in its dealings with China, as bilateral trade continues to rise. Sources indicated that the first agricultural barter deals between Russia and China are expected to materialize this autumn. In February, Russia’s economy ministry released guidance for companies on conducting barter transactions, highlighting potential pitfalls to avoid.
