Russian companies are returning to trading in kind. Particularly in demand: tangerines and potatoes.
Russia and Pakistan have signed a special trade agreement at the first trade and investment forum between the two countries. Because both countries introduce barter between themselves. This is intended to circumvent Western sanctions on the Russian economy.
According to the Russian news agency, the company Astarta-Agrotrading is supposed to deliver chickpeas and lentils to Pakistan. In return, the Pakistani Meskay + Femtee Trading Company will deliver tangerines, rice and potatoes.
Specifically, according to the contract, Russia is supposed to export 20,000 tons of chickpeas, while Pakistan supplies the same amount of rice. Another contract stipulates that Russia will receive 15,000 tons of tangerines and 10,000 tons of potatoes from Pakistan for an additional 15,000 tons of chickpeas and 10,000 tons of lentils.
According to Nasir Hamid, Pakistan’s deputy trade minister, the barter system was created due to “difficulties in reciprocal payments.”
This is not the first time that Russia has sought barter with other countries. It was only in August that Russia was said to have held talks about resuming barter trade with China. These are said to have involved metals and agricultural products in particular. However, the plans were not implemented because the companies apparently had problems meeting the requirements of both sides.
