Pakistani prime minister suggests Russia turn to barter trade to avoid financial sanctions

03 July 2024

Published in: AA

Pakistani Prime Minister Shehbaz Sharif proposed to Russian President Vladimir Putin on Wednesday to consider barter trade as a means to circumvent Western financial sanctions hindering economic cooperation.

Speaking at a meeting on the sidelines of the Shanghai Cooperation Organization (SCO) summit in Kazakhstan’s capital Astana, Sharif recalled that during the Soviet period, Russia and Pakistan engaged in barter trade.

“In the 50s, 60s, and 70s, we had a trade turnover based on barter. We imported a lot of machinery and products from the Soviet Union and exported textiles and leather to your country. All of this was done on barter terms. It seems to me that now is the time to overcome financial and banking problems and resume and expand our trade relations under the terms of barter,” he said.

Sharif said this option would greatly benefit Pakistan and help overcome many other challenges.

Meanwhile, in a separate meeting with Azerbaijani President Ilham Aliyev, Putin emphasized the significance of the North-South Transport Corridor project, calling it a “top priority” on the bilateral agenda.

The Russian leader described cooperation with Azerbaijan as “extensive,” saying: “I believe we would have plenty to discuss even if we met every month.”

Aliyev noted “a few positive developments” regarding the North-South project since their last meeting and expressed determination to expand the transport corridor infrastructure on the Azerbaijani side. He acknowledged that it currently does not meet the maximum potential use plans of their partners and neighbors.

Putin also held bilateral talks with his Mongolian counterpart Ukhnaagiin Khurelsukh, highlighting advancements in energy cooperation between the two countries.

The Russian president highlighted Mongolia’s challenges due to climate change and offered assistance in the form of grain supplies, other goods, and energy free of charge.

Khurelsukh emphasized Mongolia’s priority on logistics projects such as the development of railroads. He also mentioned the country’s ongoing efforts to address its energy shortage, including the recent construction of a hydroelectric power plant with China, and expressed interest in pursuing a similar project jointly with Russia.

Later, Putin highly praised cooperation between Moscow and Beijing in a meeting with Chinese President Xi Jinping, saying “Russian-Chinese relations of comprehensive partnership and strategic cooperation are going through the best period in their history.”

“Our cooperation is not directed against anyone. We do not form any blocs or alliances. We are simply acting in the interests of our peoples,” he stressed.

For his part, Xi highlighted the importance of completing bilateral projects on time and strengthening the friendship between the two countries.

“In a complex international situation and challenging external environment, we must remain steadfast in our commitment to eternal friendship, work diligently for the welfare of our peoples, enhance the unique value of Sino-Russian relations, cultivate new drivers of cooperation, and make tireless efforts to protect our legitimate rights and interests, as well as the fundamental norms of international relations,” he said.