Russia and China are discussing the possibility of a barter trade, with the first deal involving agriculture expected as early as this autumn, Reuters reported on Aug. 8, citing three undisclosed trade and payment sources.
The news comes as financial transactions between the two countries are becoming increasingly difficult under Washington's growing scrutiny.
Russian President Vladimir Putin visited China in May to meet his Chinese counterpart, Xi Jinping, with workarounds for payment issues on the agenda.
While one solution reportedly included using smaller regional banks that managed to evade monitoring, Reuters says payment issues seem to persist.
Russia is already developing regulations for barter trading and China is believed to be doing the same, Russian sources told the news agency.
The deal would be the first such instance in around 30 years, as barter trading between Moscow and Beijing ceased after the fall of the Soviet Union.
The U.S. and other countries unveiled a new wave of sanctions on June 12 that targeted Russian financial institutions, as well as entities and individuals based in China and elsewhere that help Moscow circumvent the existing restrictions.
Trade between Russia and China has surged by 121% since 2021, underscoring the Chinese role as Moscow's economic lifeline. A functioning payment system is necessary for maintaining trade relations, and Russia was cut off from SWIFT in 2022.
While the Russian economy proved surprising resiliance in the face of Western sanctions, the measures gradually forced many Chinese banks to scale down activities with or in Russia.
Nate Ostiller
(Updated: )
