Russia to Accept Payments in Tangerines From Pakistan Amid Monetary Crisis

Russian companies have launched a barter trade system with Pakistan to facilitate economic exchanges without relying on monetary transactions, Russian propagandist agency TASS reported on October 1.

The move comes amid tightened Western sanctions.

The agreement was finalized at the first Pakistan-Russia Trade and Investment Forum in Moscow. According to Russian state media outlet TASS, Astarta-Agrotrading will be the first Russian company to use the barter system, supplying Pakistan with chickpeas and lentils. In return, Pakistan’s Meskay + Femtee Trading Company will provide tangerines and rice.

Under the terms of the deal, Russia will export 20,000 tons of chickpeas in exchange for an equivalent amount of rice from Pakistan. Another contract outlines the trade of 15,000 tons of chickpeas and 10,000 tons of lentils from Russia in return for 15,000 tons of tangerines and 10,000 tons of potatoes.

Nasir Hamid, Pakistan’s deputy commerce minister, explained that the barter system was introduced due to “difficulties with mutual payments” caused by international sanctions against Russia following its invasion of Ukraine.

With traditional monetary transactions increasingly under scrutiny, barter agreements provide a way for companies to continue trading by exchanging goods directly, avoiding the complications of bank payments. These arrangements help sidestep monitoring organizations responsible for enforcing compliance with sanctions.

This is not Russia’s first attempt to use barter trade as a workaround. In August, Reuters reported that Russia was in talks with China about reviving barter deals, particularly in metals and agricultural products. However, progress has been slow, as companies on both sides struggle to align their needs.

Barter trade between Beijing and Moscow was common before the collapse of the Soviet Union and continued into the 1990s. In May, Putin and Chinese President Xi Jinping discussed efforts to counter US sanctions on mutual payments during a three-day summit.

Earlier, EU prepared new sanctions over Russia’s hybrid threats.