Russia and China are discussing barter trade agreements that will help bypass the US-controlled SWIFT international banking system and limit currency risks; the first such transaction could take place this fall. Although workarounds have emerged, such as the use of small regional Chinese banks whose activities are harder for the US to detect, problems with payments still exist.
The top manager of a large Russian bank said that a barter scheme is being prepared but refused to reveal the details. Another source, who works in the payment field, said that an agreement with Russia regarding the export of food products is being discussed. Also, a source from a Russian industrial firm said that the issue of exporting metals from Russia in exchange for machines from China is being discussed between the countries.
The last time barter agreements between China and Russia were common was before the collapse of the Soviet Union and they continued into the 1990s.