Pakistan, Russia sign first ever barter trade deal at inaugural trade forum in Moscow

A group photo of Pakistani and Russian delegation participating in the inaugural Pakistan-Russia Trade and Investment Forum in Mosco, Russia, on October 1, 2024. (courtesy: Pakistan mission in Moscow)

• More than 60 Pakistani and 100 Russian companies are participating in the event in the Russian capital of Moscow
• Pakistan and Russia, once Cold War rivals, have warmed up to each other in recent years through regular interactions

ISLAMABAD: Pakistan and Russia have signed a first ever agreement on barter trade between the two countries, the Pakistani embassy in Moscow said on Tuesday, as a delegation of over 60 Pakistani companies participated in an inaugural Pakistan-Russia Trade and Investment Forum in Moscow.
The forum was inaugurated by Pakistan’s Ambassador to Russia Muhammad Khalid Jamali along with high-level Russian officials, including Deputy Minister of Industry and Trade Alexey Gruzdev and Evgeny Fidchuk, an adviser to the Russian transport minister.
The Pakistani delegation, led by Privatization Minister Abdul Aleem Khan, attended the forum with an aim to strengthen economic ties and explore new business opportunities in Russia. According to the Pakistani embassy in Moscow, over 100 Russian companies are taking part in the forum as well.
“A significant milestone was achieved with the signing of the first-ever MoU [Memorandum of Understanding] on barter trade between Pakistan and Russia,” the Pakistani embassy told Arab News in a statement.
“The Russian company, LLC Astarta Agrotrading, and Pakistani firms, Meskay & Femtee Trading Company and National Fruit Processing Factory, entered into agreements for the exchange of goods, including chickpeas, rice, mandarins, potatoes and red lentils.”
More than 60 Pakistani companies, having a combined export value exceeding $500 million, showcased a diverse range of Pakistani products and services, including textiles, leather, sports goods, pharmaceuticals, food, agricultural products, logistics, and tourism, at the event, according to the Pakistani mission.
On the Russian side, more than 60 officials from the Industry and Trade, Agriculture, Economic Development and other ministries as well as representatives from the Russian Export Center, Federal Chamber, Moscow Chamber, regional chambers and leading associations attended the forum. Additionally, Russian banks such as MKB were present to explore potential collaborations.
Addressing the forum, Pakistani Privatization Minister Khan said the current trade volume between the two countries did not reflect their potential.
“Our desire is to enhance trade and investment,” the minister said in televised comments, adding that Pakistan constituted the 5th largest market in the world and had the most liberal trade and investment regime.
“There is a huge potential for an increase in trade between the two countries and today marks the start of new bilateral relations with Russia.”
Russian Deputy Trade and Investment Minister Gruzdev welcomed the Pakistani delegates and said this interaction would have a positive impact on bilateral relations between the two countries.
“This forum will open new avenues of trade and investment,” he added.
In his inaugural address, Pakistan’s Ambassador Jamali emphasized the forum would increase trade opportunities between Pakistan and Russia.
“Trade will benefit both countries and we already have a mechanism for road transport as we signed a road transport agreement in 2022,” he added.
Pakistan and Russia, once Cold War rivals, have warmed up to each other in recent years through regular business and trade interactions. As Islamabad seeks to enhance its role as a transit hub for landlocked economies in Central Asia, it has expressed interest in connecting with Russia through Central Asian states for bilateral trade.
Islamabad’s ties with Russia also saw significant improvement last year after Pakistan started purchasing Russian crude oil at a discount rate. The development came after geopolitical tensions almost doubled the fuel prices in Pakistan last year, forcing the South Asian country to opt for cheaper sources of fuel.
Pakistan also received its first shipment of liquified petroleum gas from Russia in September 2023, marking Islamabad’s second major Russian energy purchase.
Last month, Russia’s Deputy Prime Minister Alexei Overchuk arrived in Islamabad on a brief visit, seeking to expand trade and investment ties with Pakistan.