For the first time in 30 years, China and Russia may switch to barter trade, including grain

China and Russia may start using barter trade schemes this fall for the first time in 30 years. In this way, they are trying to limit the use of banking systems controlled by the United States, Reuters writes.

In Russia, they complain that Putin’s visit to China in May, which was highly anticipated, did not meet expectations and the parties did not agree on secure mechanisms for making payments between the two countries.

Barter trade would allow Beijing and Moscow to circumvent payment problems, reduce the visibility of their bilateral transactions to Western regulators, and limit currency risk.

Russian sources told Reuters that the country is already developing rules for barter trade and suggested that China is doing the same.

The barter schemes will first be applied to exports of Russian agricultural products to China, then extended to exports of metals from Russia in exchange for cars from China, and so on to trade in other goods.

Tags: sanctions, Russia, China