Islamabad: Pakistan and Russia have signed their first-ever barter trade agreement during the inaugural Pakistan-Russia Trade Forum, according to recent report.
This significant deal aims to strengthen economic ties between the two nations by allowing them to exchange agricultural products without relying on traditional payment systems. The move is particularly important due to payment constraints caused by Western sanctions imposed on Russia following its 2022 invasion of Ukraine. These sanctions have prompted Moscow to turn to barter deals to avoid currency risks and sidestep the complications of international payment systems.
As part of the agreement, Russia’s Astarta-Agrotrading will supply 20,000 tonnes of chickpeas to Pakistan, while Pakistan’s Meskay & Femtee Trading Company will provide 20,000 tonnes of rice in return. A second agreement involves the trade of 15,000 tonnes of chickpeas and 10,000 tonnes of lentils from Russia in exchange for 15,000 tonnes of mandarins and 10,000 tonnes of potatoes from Pakistan.
Speaking at the forum, a Pakistani official highlighted the difficulties both nations face in conducting financial transactions due to the geopolitical situation. Barter trading, according to the official, offers a practical solution to these challenges, allowing the countries to continue trading while bypassing the complexities of mutual payments.
Barter trade has become an increasingly viable option for Russia, which has also been exploring similar agreements with China. The agreement between Pakistan and Russia is seen as a milestone in their economic relations. It will open up new opportunities for trade cooperation in a challenging global environment.
