Russia is once again relying more heavily on barter trade with China due to sanctions

For the first time since the 1990s, barter trade is spreading significantly in Russia. The reason for this is Western sanctions, which make payments in dollars or euros difficult and discourage Chinese banks from accepting Russian money.
Companies are therefore increasingly exchanging goods for goods—such as wheat for Chinese cars or flaxseed for building materials and household appliances.

The Ministry of Economic Development has even created a guide for international barter transactions and proposed the establishment of a special exchange. According to customs data, several transactions have already been registered, including a contract worth around $100,000. Reuters identified at least eight such transactions, and experts expect a further increase.

Barter trade allows sanctions against banks and financial transfers to be circumvented and is more difficult to track. Some agreements also allowed Western goods to be imported into Russia. At the economic forum in Kazan in August, Chinese companies described barter trade as a practical solution.

Although the Russian government claims that barter accounts for only a negligible portion of foreign trade, discrepancies between data from the central bank and customs authorities suggest that the volume may be higher. In addition, companies also use intermediaries, cryptocurrencies, or payments via the Russian VTB Bank in Shanghai.

(reuters, est)