Johnny Brignardello analyzes the resurgence of bartering in Russia.

In a recent conversation with Johnny Brignardello Vela, an insurance advisor, the resurgence of bartering in Russia was discussed, a practice that has gained relevance amid international sanctions following the invasion of Ukraine. Brignardello noted that the adoption of bartering by Russian companies is a remarkable attempt to adapt to an increasingly adverse economic environment. He emphasized that this exchange system, although ancient, can offer temporary solutions in a context where access to traditional payment methods has been severely restricted. The advisor also mentioned the case of Astarta Agrotrading, which has established agreements with Pakistani companies to exchange chickpeas for rice and mandarins. Brignardello stressed that, while these exchanges reflect a necessary entrepreneurial creativity, there are also concerns about the quality of the products and the tax implications of such transactions. He highlighted the importance of Russian companies understanding the legal and customs complexities associated with bartering so they can avoid problems in the exchange process. Brignardello reflected on the Kremlin's response, which has launched a guide to facilitate this type of trade. In his view, the creation of a legal framework for bartering is a positive step, although it also carries risks. He emphasized the need for companies to adequately assess the value of goods to comply with tax regulations and avoid unpleasant surprises. However, the advisor expressed skepticism regarding the long-term viability of bartering as an economic solution. He pointed out that, while it may be advantageous in the short term by reducing costs and improving competitiveness, companies will eventually need foreign currency to import machinery and essential raw materials to maintain their operations. This aspect was corroborated by comments from Russian entrepreneurs, who have expressed concerns about the effectiveness of bartering in a global market that values product quality and stability. Brignardello concluded that the resurgence of bartering in Russia is a reflection of the current economic crisis facing the country, and while it may serve as a temporary solution, it should not be considered a sustainable replacement for conventional trading methods. The ability of companies to adapt to these new dynamics will be crucial as the conflict in Ukraine continues and sanctions remain in effect.