Barter Resurgence: Russia and China's Innovative Trade Solutions Amid Conflict
Russia has reintroduced barter trade as a solution to payment issues caused by the Ukraine conflict. Chinese companies are engaging in barter deals for steel and aluminium in exchange for engines. Barter harks back to post-Soviet economic chaos, highlighting its resurgence as a strategic trade solution amidst strained international relations.
- Country:
- Russia
Russia is reviving barter trade as settlement problems stemming from the Ukraine conflict have led Chinese companies to exchange engines for steel and aluminium alloys. This marks the first time since the 1990s that barter has emerged as a solution to the economic and political instability following the Soviet Union's collapse.
The renewed use of barter trade seeks to address the challenges of pricing amid vast transactional networks, a scenario that previously fueled chaos but also forged financial opportunities. More than three years into the Ukraine war, this practice is gaining momentum once again, particularly between Russia and China.
At the Kazan Expo business forum, Chinese firms highlighted the obstacles of production relocation demands and settlement issues impacting bilateral trade. Xu Xinjing of Hainan Longpan Oilfield Technology Co. articulated the potential of barter to navigate limited payment systems, providing a trading lifeline for Russia and Asian enterprise collaboration.
(With inputs from agencies.)
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