MOSCOW (Realist English). For the first time since the 1990s, barter has re-emerged in Russia’s foreign trade, with companies exchanging goods such as wheat for Chinese cars and flax seeds for building materials to bypass Western sanctions.
The shift comes after more than 25,000 restrictions imposed by the U.S., Europe and allies since the annexation of Crimea in 2014 and the 2022 war in Ukraine. Key measures, including disconnecting Russian banks from the SWIFT system and U.S. pressure on Chinese banks, have complicated financial transactions and fueled demand for barter, which is harder to trace.
Reuters identified at least eight such deals since 2024, ranging from metals for machinery to flax seeds for consumer goods. In one case, Chinese vehicles were swapped for Russian wheat, while another customs record from the Urals region showed flax traded for construction materials worth about $100,000.
Officials confirmed barter is being used “for a wide range of goods,” though stressed the volumes remain small compared with total trade. Still, economists say the trend highlights broader strains. “The growth of barter is a symptom of de-dollarisation, sanctions pressure and liquidity problems,” said Maxim Spassky of the Russian-Asian Union of Industrialists and Entrepreneurs.
Russia’s trade surplus shrank 14% in January–July 2025 to $77.2 billion, with exports falling by $11.5 billion. Analysts point to a $7 billion discrepancy between customs and central bank figures as a possible sign of unrecorded barter.
The return of barter recalls the chaotic 1990s, when inflation and cash shortages forced companies into vast exchange chains. Today, however, the driver is sanctions: businesses are also experimenting with “payment agents,” settlements through VTB’s Shanghai branch, and cryptocurrencies.
“There is no single technological solution yet,” said Sergey Putyatinsky of Russian financial firm BCS. “Businesses are applying 10–15 different payment methods at the same time.”
