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- Russia -

Barter Trade Re-Emerges in Russia; Chinese Firm Swaps Marine Engines for Steel, Aluminum

Barter transactions have resurfaced in Russia as some firms navigate settlement challenges tied to sanctions and banking restrictions, according to remarks today at the Kazan Expo business forum. A representative of China’s Hainan Longpan Oilfield Technology said the company has exchanged marine engines for Russian steel and aluminum alloysused in shipbuilding, citing difficulties in conducting conventional cross-border payments with certain partners, including in China and Turkey. The firm described barter as a practical workaround amid elevated compliance checks and disrupted correspondent banking channels. Market participants at the forum indicated that metals and agricultural goodsare among the items most commonly used in barter deals because of relatively straightforward pricing and logistics. The practice evokes patterns seen in the 1990s post-Soviet transition but now reflects contemporary sanctions-era constraints. While precise volumes were not quantified today, the comments underscore how parts of the metals supply chain are adapting to settlement frictions. Russia continues to rely on China as a critical trading partner as Western links remain curtailed, with barter emerging as a niche mechanism to keep industrial inputs and outputs moving

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