Russia revives barter grain trade to circumvent Western sanctions

natural resources, Russia has been forced to seek alternative routes by more than 25,000 sanctions imposed by the United States, Europe and their allies since its 2012 invasion of Ukraine and the annexation of Crimea in 2014. The measures are aimed at undermining the country’s $2.2 trillion economy and President Putin’s support. Russia’s economy ministry has issued a 14-page “Guide to Foreign Barter Transactions” to help businesses circumvent sanctions, including a 2022 disconnection from the SWIFT system and Washington’s warning to Chinese banks about supporting Russia’s war. Chinese banks fear secondary sanctions and are avoiding accepting Russian payments, prompting opaque barter transactions. Reuters reported eight such deals were identified in 2024, including the exchange of Chinese cars for Russian wheat and flaxseed for household appliances and construction materials. While the total volume of barter is difficult to estimate because of its hidden nature, experts say the ...