Russian Foreign Minister Sergey Lavrov has emphasized that a barter trade system could be organized with China to overcome the current settlement problems. Lavrov noted that a similar system was studied by Brazil’s Lula outside the BRICS organization, proposing barter settlements among countries in Latin America and the Caribbean region.
Russian Foreign Minister States Barter Trade Is Under Consideration for Bilateral Settlements With China
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Russian Foreign Minister Sergey Lavrov Considers Barter Systems to Fix the Current Payment Situation With China
The worsening of the payments ecosystem situation is causing Russia to consider alternative ways of completing settlements with China. Russian Foreign Minister Sergey Lavrov touched on this subject recently, reaffirming that Russia could switch to a barter-based settlements system to continue trading with one of its largest commercial partners.
According to Russian official news portal TASS, Lavrov stated that while 95% of the payments between the nations were settled using national currencies, and he did not see the need for such a system, it would not be bad to establish it if needed.
Lavrov declared:
If it is convenient and allows you not to depend on bank transfers, which the United States and its allies are trying to suppress in every possible way, then why not.
Lavrov stated that this kind of system is not new and other countries are also studying using barter to settle payments outside the BRICS bloc. “Lula proposed doing something similar within the community of Latin America and Caribbean countries. So, this train is already rolling, and it cannot be stopped,” Lavrov stressed.
Barter is one of the last solutions proposed to mitigate the problems created by the latest package of sanctions issued against Russia in August, which involved 46 Chinese companies allegedly helping the Russian war effort. This has caused Chinese banks not to process payments from Russian companies importing dual-use products that can be leveraged both for civilian and military purposes.
However, according to local reports, these problems have reached even other kinds of merchandise, as Chinese banks try to avoid Western sanctions. Lavrov affirmed that alternative payment platforms would be established with BRICS and China.
What do you think about Lavrov’s statements on barter trade systems? Tell us in the comments section below.
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