Russia Reverts to Barter Trade Amid Western Sanctions, Echoing Post-Soviet Era

Russia's foreign commerce is turning to barter trade for the first time in three decades as Western sanctions tighten their grip. Companies are exchanging wheat and vehicles with China for construction materials, bypassing blocked trade channels. This marks a return to the 1990s post-Soviet practice, when economic collapse fueled barter systems amid hyperinflation and liquidity crises.

The U.S., EU, and allies have imposed over 25,000 sanctions on Russia since 2014, escalating after the 2022 Ukraine invasion. Measures include cutting Russian banks from SWIFT, restricting access to Western capital markets, and targeting energy exports. The sanctions aim to cripple Moscow's $2.2 trillion economy and curb military financing.

Washington has pressured India, a major buyer of Russian oil, through tariffs. Meanwhile, former U.S. President TRUMP hinted at renegotiating energy sanctions—but only if NATO members meet undisclosed conditions. The geopolitical standoff continues to reshape global trade dynamics.