US EditionWheat for Chinese Cars? Russia Turns to Barter to Skirt Sanctions.
Russian companies increased barter trade to bypass Western sanctions, with $7 billion in goods exchanged in early 2025, including Chinese cars for Russian wheat, indicating growing economic adaptation.
- In 2024, Russia's Ministry of Economic Development released a detailed 14-page manual to help companies utilize barter transactions as a way to evade Western sanctions amid challenging trade conditions.
- The guide responds to over 25,000 sanctions imposed by the US, Europe and allies since Russia's 2014 Crimea annexation and 2022 Ukraine invasion.
- According to Reuters, there have been at least eight instances of barter transactions, including exchanges such as Russian wheat for vehicles from China and flax seeds swapped for construction supplies, reflecting an increased reliance on barter to bypass financial sanctions.
- Maxim Spassky said barter growth reflects de-dollarisation, sanctions pressure and liquidity issues, predicting volumes will likely increase as Chinese banks fear secondary sanctions.
- The rise of barter signals deep economic strain for Russia, complicates global trade, and may worsen US-China-Russia tensions while reflecting adaptation to financial restrictions.
13 Articles
13 Articles
Russia Revives Barter Trade to Bypass Western Sanctions
BackgroundBarter trade is making a comeback in Russia for the first time since the 1990s, as the country struggles under the weight of Western sanctions imposed after its invasion of Ukraine in 2022 and the earlier annexation of Crimea in 2014. With over 25,000 sanctions in place, Russia’s economy—valued at $2.2 trillion—faces rising inflation, a […] The post Russia Revives Barter Trade to Bypass Western Sanctions appeared first on Modern Diplom…
Russia may pay for Chinese cars in wheat to sidestep Western sanctions
Old-fashioned barter is on the rise in Russia's foreign trade for the first time since the 1990s, as companies seeking to outfox Western sanctions swap wheat for Chinese cars and flax seeds for building materials.
To circumvent tough Western sanctions, Russia and China are returning to the "barter" trade model of the 1990s, exchanging wheat for Chinese cars, flax seeds for building materials, and raw materials for services.
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