Under the agreement, Russian company Astarta-Agrotrading will send 20,000 tons of chickpeas to Pakistan, while Pakistan’s Meskay + Femtee Trading Company will reciprocate with an equivalent amount of rice. In another deal, Russia will export 15,000 tons of chickpeas and 10,000 tons of lentils in exchange for 15,000 tons of mandarins and 10,000 tons of potatoes from Pakistan. This arrangement was initiated at the first Pakistan-Russia Trade and Investment Forum in Moscow.
The barter system was developed to overcome difficulties in mutual payments due to international sanctions, which have targeted Russia’s banking system. By directly exchanging goods, both countries can maintain their trade relations without using financial institutions, thus avoiding scrutiny from international bodies tasked with enforcing sanctions.
Russia and Pakistan have agreed to a barter trade agreement, a decision made during their first joint trade and investment forum this week. Pakistan’s Minister for Privatization and Communication has offered his perspective on the future of the two countries’ cooperation. pic.twitter.com/3Vw5MTYtjg
— RT (@RT_com) October 6, 2024
Russia has pursued similar barter deals with China, though progress has been slow. The revival of such agreements reflects the growing pressure on both Russia and China from U.S. sanctions. These developments are part of broader efforts, such as the BRICS nations exploring alternative payment networks to counter U.S. economic restrictions. However, initiatives like the BRICS Bridge payments system are unlikely to be operational until 2028.
For India, this growing trade relationship between Russia and Pakistan could create diplomatic tensions. Historically, India and Russia have maintained close ties, particularly in defense and trade. Yet, Russia’s deepening relations with India’s regional rivals, China and Pakistan, may complicate these longstanding partnerships.
