Russian Foreign Minister Sergey Lavrov has stressed that a barter system could be established with China to overcome current settlement problems. Lavrov noted that a similar system has been studied by Brazil's Lula outside the BRICS organization, proposing barter settlements between countries in Latin America and the Caribbean.

Russian Foreign Minister Sergey Lavrov considers barter system to resolve current payment situation with China

The deteriorating state of the payments ecosystem has forced Russia to consider alternative ways to complete deals with China. Russian Foreign Minister Sergey Lavrov addressed the issue recently, reiterating that Russia could turn to a barter payment system to continue dealing with one of its largest trading partners.

According to Russia's official news portal TASS, Lavrov stated that while 95% of payments between countries are settled in national currencies and he does not see the need for such a system, it would not be a bad thing to set it up if necessary.

Lavrov stated:

If it's convenient and saves you from having to rely on bank transfers, which the US and its allies are trying to prevent by any means possible, then why not?

Lavrov said that the system is not new and that other countries are also studying the use of barter for payments outside the BRICS bloc. "Lula proposed doing something similar in the community of Latin American and Caribbean countries. So this train is rolling and cannot be stopped," Lavrov stressed.

Bartering is one of the last-ditch solutions proposed to mitigate the problems caused by the latest package of sanctions imposed on Russia in August, which targeted 46 Chinese companies accused of helping Russia’s war effort. This prevents Chinese banks from processing payments from Russian companies importing dual-use products that can be used for both civilian and military purposes.

However, according to local reports, these problems are even spreading to other goods, as Chinese banks try to avoid Western sanctions. Lavrov asserted that alternative payment platforms will be set up with BRICS and China.

What do you think about Lavrov's statement about the barter trade system? Let us know in the comments below.
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