China’s Xi Jinping (right) shows the way for Russian President Vladimir Putin after a photo session at the Shanghai Cooperation Organization (SCO) summit at the Meijiang Exhibition Center in Tianjin, China, Monday, September 1, 2025. AP/Suo Takekuma
As reported by Reuters
The consequences of US and EU sanctions on financial operations are pushing Russia to seek alternatives in external trade. According to analytical sources, Moscow has intensified barter deals with the People’s Republic of China and India to bypass SWIFT system restrictions and bans on bank transfers.
Within such schemes, Russia exchanges wheat and other goods for cars, electronics, and components for the production of weapons or ship engines. Such deals help reduce dependence on Western banks and ease passage through importing countries.
Key parameters of barter operations
According to the same sources, at least eight barter agreements have already been recorded between Russia and partner countries: Russia exports grain and metal alloys, receiving in return imported goods and equipment. Experts estimate that the total volume of barter trade allows producing a greater number of goods than those that arrive through monetary settlements.
China’s role and imports from the West
The Russian Customs Service confirmed the use of barter with various countries “across a wide range of goods.” The government and the Central Bank of Russia have refrained from commenting. There is also mention of a barter-based delivery of flaxseed in exchange for household appliances worth about $100,000 between Russia and China, carried out through the Ural Customs. China is one of the world’s largest importers of flax.
In addition, some barter deals have enabled imports of Western goods to the Russian Federation, indicating sanctions evasion in certain market segments. At the Kazan Expo business forum in August 2025, Chinese companies cited problems with settling financial operations. Xu Xingjin, head of a Chinese marine engineering company, noted that barter could be the solution.
“Under the current constraints on payments,” barter has opened up new opportunities for businesses in Russia and Asian countries.
Such data highlight a shift in priorities in international supply chains: barter schemes help reduce currency risk, preserve trade links, and support production needs amid pressure on financial operations. For Russia, this is a tool to maintain access to critical goods and equipment, and for Chinese companies – an opportunity to expand market presence and optimize logistics through new trading routes.
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