Barter deals boost Russia and Pakistan amid sanctions squeeze
Sanctions make sense. Russia has been forced to enter a barter agreement with Pakistan to maintain trade liquidity. Pakistan will pay the Kremlin regime for rice with mandarins.
Russia has to resort to desperate measures to overcome the effects of Western sanctions. As reported by The Moscow Times, the Kremlin authorities agreed to a barter trade system.
Mandarins and potatoes instead of money
According to the agreement, Russia will export approximately 20,000 metric tonnes of chickpeas, while Pakistan will supply an equal amount of rice.
Another contract stipulates that Russia will send around 15,000 metric tonnes of chickpeas and 10,000 metric tonnes of lentils in exchange for about 15,000 metric tonnes of mandarins and 10,000 metric tonnes of potatoes, as reported by the Russian state news agency TASS.
This unusual trade agreement was concluded at the first Pakistan-Russia Trade and Investment Forum held in Moscow. It's an additional step in the Kremlin's search for allies across Asia.
Ways to circumvent sanctions
Russia's full-scale invasion of Ukraine and the subsequent wave of sanctions imposed by the USA, EU, and the UK on the aggressor country and critical figures in the regime have hindered their traditional trade methods.
The alternative agreement allows Russian companies to bypass sanctions and economic controls due to the lack of banking transactions.
Failed agreement with China
Russia has already tried to establish similar relations with China, but implementing plans for barter exchanges of metals and agricultural products proved challenging. Such agreements were common between China and the Soviet Union, as both communist states relied 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 also strengthened its alliance with Iran, as Western sanctions are something that unites both countries. Iran is believed to have played an essential role in supplying Moscow with drones to use on the Ukrainian battlefield when Russian resources began to dwindle.
