Islamabad: In a groundbreaking move to enhance bilateral economic relations, Pakistan and Russia have signed a barter trade agreement, facilitating the exchange of agricultural products. This marks the first arrangement of its kind between the two nations, introduced at the inaugural Pakistan-Russia Trade Forum.

According to Zameen.Com, the agreement comes as a strategic solution to overcome payment barriers posed by Western sanctions on Russia following its 2022 invasion of Ukraine. The deal allows for the trade of goods such as rice, potatoes, chickpeas, lentils, and mandarins, bypassing conventional financial channels and minimizing currency risks.

Under the terms of the agreement, Pakistan’s Meskay and Femtee Trading Company will exchange 20,000 tonnes of rice and 10,000 tonnes of potatoes for 20,000 tonnes of chickpeas and 10,000 tonnes of lentils from Russia’s Astarta-Agrotrading. Additionally, 15,000 tonnes of mandarins from Pakistan will be swapped for another 15,000 tonnes of chickpeas from Russia.

The initiative reflects a growing trend towards barter trade, especially notable in Russia’s increasing economic exchanges with countries like China. This method offers a practical approach for conducting international trade amidst complex geopolitical and economic challenges.