Barter is making a comeback in Russia’s foreign trade due to Western sanctions, with deals like wheat for Chinese cars and flax seeds for building materials. Despite sanctions, Putin claims Russia’s economy is outperforming expectations, but signs of strain are appearing, with high inflation and a technically recessionary economy. Some fear secondary sanctions, pushing businesses towards barter transactions. The growth of barter is seen as a symptom of de-dollarization, sanctions pressure, and liquidity problems among partners. Transactions include steel and aluminum alloys for marine engines and flax seeds for household appliances and building materials. China is a major importer of Russian flax seed, used in industrial processes and as a nutritional product. Other workaround methods include payment agents, state-owned bank branches, and cryptocurrencies pegged to the U.S. dollar. Businesses are applying multiple payment methods to survive the economic challenges.

Read more at Yahoo Finance: Exclusive-Wheat for Chinese cars? Russia turns to barter to skirt sanctions