In the face of severe restrictions from the West, Russian companies have found a new way to conduct business – barter. Now, instead of the usual monetary payments, goods are increasingly exchanged. For example, Russian wheat is sent to China in exchange for cars, and flax seeds are exchanged for building materials. This approach significantly complicates the control by Western structures, because it is much more difficult to track the exchange of goods than bank transfers. The main reason for the transition to barter is the caution of Chinese banks. Many financial institutions are afraid of secondary sanctions and refuse to conduct transactions with Russia. As a result, businesses have to look for alternative ways of cooperation. Last month, the Chinese company Hainan Longpan Oilfield Technology Co. offered to replace steel and aluminum alloys with marine engines. And this is not an isolated case – at least eight such transactions are known.
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