China, Russia may switch to barter trade due to sanctions — media

China, Russia may switch to barter trade due to sanctions — media

In the fall, Russia and China may start using barter trade to reduce reliance on banking systems controlled by the United States

Reuters reported the information, citing three sources.

The first two such agreements may be signed by China and Russia this fall.

"Barter trading would allow Moscow and Beijing to circumvent payment issues, reduce the visibility Western regulators have over their bilateral transactions, and limit currency risk," the news agency explains.

During the visit of Russian leader Vladimir Putin to China in May 2024, delays in bilateral payments were one of the main issues for discussion.

The article emphasizes that Russia is developing rules for barter trade, and Reuters' Russian interlocutors suggest that China is doing the same.

The reason for such actions by Moscow and Beijing is Western sanctions: in particular, states seek to limit the use of US-controlled banking systems.

• On July 31, it was reported that China had adjusted its export controls on military UAVs following the visit of Ukrainian Foreign Minister Dmytro Kuleba to Beijing.