For the first time in 30 years, Russia and China have returned to barter trade agreements as Russia has increasing problems making international payments thanks to the US “strangulation sanctions”.

Barter deals were widespread in the 1990s during Russia’s “virtual economy” days following its complete economic collapse in the wake of the end of the Soviet Union, when the payments and settlements system ceased functioning.

Since December, the US has changed tactics and is increasingly focusing on individual banks, threatening them with secondary sanctions that has led to major Chinese and Turkish banks cutting ties with Russia, making settling trade deals increasingly difficult.

The barter agreements, which were common between the two countries before the collapse of the Soviet Union and into the 1990s, are being discussed as a solution to ongoing payment difficulties resulting from Western sanctions. Russian President Vladimir Putin met with Chinese President Xi Jinping in May for a three-day summit where counteracting US sanctions on mutual payments featured high on the agenda.

https://www.intellinews.com/china-russia-to-reintroduce-barter-trade-for-the-first-time-in-30-to-avoid-us-sanctions-337867/