The last time this happened was in the 90s: Russia wants to pay China in food and metal

Russia and China plan to resume barter trade this fall to circumvent difficulties with bank payments due to sanctions. The first agreements are expected to cover the exchange of agricultural products and industrial goods.

Reuters reports. According to three sources close to the bilateral trade, the likelihood that the first agricultural agreements will be concluded by the end of 2024 is quite high.

Russia, under the pressure of sanctions and economic isolation, is forced to resort to barter trade with China, which is a clear step backward in its economic development. Due to the inability to conduct full-fledged banking operations and lack of access to modern financial systems, Russia is returning to archaic methods of trade, which indicates a deterioration in its economic situation.

The barter deals that may take place this fall are not planned for the sake of the good life but as an attempt to somehow circumvent sanctions and avoid currency risks. This is a direct consequence of political isolation and economic decline of the country.

Barter schemes between Russia and China are not new. They were actively used before the collapse of the Soviet Union and in the 1990s. However, after the banking system became more developed, the countries switched to cash payments.

Despite the Kremlin's efforts to find workarounds, such as the use of regional Chinese banks, these measures proved ineffective, prompting barter trade, a method that was widely used in the 1990s during the Russian economic crisis. This situation demonstrates how deeply Russia is mired in its economic trap, and how even its closest allies, such as China, are trying to minimize the risks of cooperation with a country that is increasingly becoming economically unstable and unpredictable.

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