Russia And Pakistan Switch To Barter

• 1.10.2024, 14:57

Lentils are to be exchanged for tangerines.

Companies from Russia and Pakistan have launched a barter trade mechanism: an agreement was signed on the sidelines of the first Pakistani-Russian Trade and Investment Forum in Moscow on Tuesday, the TASS news agency reported on Tuesday.

Russian company Astarta-Agrotrading will export chickpeas and lentils in exchange for tangerines and rice from Pakistani Meskay + Femtee Trading Company.

As part of the agreement, the Russian company will supply 20,000 tons of chickpeas, while the Pakistani company will supply 20,000 tons of rice, the agreement says.

Under another contract, the Russian side will supply 15,000 tons of chickpeas and 10,000 tons of lentils in exchange for 15,000 tons of tangerines and 10,000 tons of potatoes.

“Russia and Pakistan are experiencing certain difficulties in making mutual payments. Therefore, the two companies have decided to launch a barter trade mechanism,” TASS quotes Pakistan’s Deputy Commerce Minister Nasir Hamid as saying.

Barter trade schemes, which do not involve money transfers or bank payments, help companies avoid unnecessary attention from Western regulators monitoring compliance with sanctions, experts say.