Russia and China are exploring the use of barter trading schemes, with deals potentially starting this autumn, as both nations aim to circumvent banking systems monitored by the United States, three trade and payments sources told Reuters. Two sources indicated that these deals might involve agricultural products.
When President Vladimir Putin visited China in May, bilateral payment delays were a key discussion point. Although workarounds such as using smaller regional Chinese banks have emerged, payment issues persist.
Barter trading would enable Moscow and Beijing to bypass these payment challenges, reduce Western regulators’ visibility over their transactions, and limit currency risk.
Russia is reportedly developing regulations for barter trading, with the assumption that China is doing the same, according to the sources closely involved in bilateral trade, who requested anonymity due to the sensitive nature of the information.
A senior manager at a large Russian bank mentioned that a barter scheme is being prepared but declined to provide details. One payment industry source mentioned that a trade involving Russia exporting food products is under discussion.
The Russian industry and trade ministry and China’s commerce ministry did not respond to inquiries about the commodity barter trade.
