Indonesia to trade palm oil and coffee for Russian fighter jets

Reading Time: 1 minute

In good old COMECON style, Russia will accept payments from Indonesia for Russian-built fighter planes in commodities such as palm oil and coffee, reports said.

Indonesian state trading company PT Perusahaan Perdagangan Indonesia and Russian state conglomerate Rostec have signed a preliminary deal to trade Sukhoi SU-35 jets for commodities like palm oil and coffee, the Indonesian trade ministry announced on August 6.

“This barter under the supervision of both governments hopefully will soon be realised through the exchange of eleven Sukhoi SU-35s and a number of Indonesian exports, starting from coffee and tea to palm oil and strategic defense products,” Trade Minister Enggartiasto Lukita noted.

He didn’t reveal details on the value of the deal or the quantity of commodities Indonesia would potentially ship to Russia.

The reasons for the barter deal are obviously the fact that Russia is currently facing a new round of U.S.-imposed trade sanctions, while Indonesia is trying to promote its palm oil products amid threats of a cut in consumption by European Union countries.

The Council for Mutual Economic Assistance, or COMECON, was a trade bloc that existed from 1949 to 1991 under the leadership of the Soviet Union that comprised the countries of the Eastern Bloc along with a number of communist states elsewhere in the world. It was largely based on barter trade owing to the scarcity of hard currency reserves among the member states.

Today’s Russia is commonly reverting to the system at times when its global trade activities get disrupted by a volatile rouble or by sanctions.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 1 minute

In good old COMECON style, Russia will accept payments from Indonesia for Russian-built fighter planes in commodities such as palm oil and coffee, reports said.

Reading Time: 1 minute

In good old COMECON style, Russia will accept payments from Indonesia for Russian-built fighter planes in commodities such as palm oil and coffee, reports said.

Indonesian state trading company PT Perusahaan Perdagangan Indonesia and Russian state conglomerate Rostec have signed a preliminary deal to trade Sukhoi SU-35 jets for commodities like palm oil and coffee, the Indonesian trade ministry announced on August 6.

“This barter under the supervision of both governments hopefully will soon be realised through the exchange of eleven Sukhoi SU-35s and a number of Indonesian exports, starting from coffee and tea to palm oil and strategic defense products,” Trade Minister Enggartiasto Lukita noted.

He didn’t reveal details on the value of the deal or the quantity of commodities Indonesia would potentially ship to Russia.

The reasons for the barter deal are obviously the fact that Russia is currently facing a new round of U.S.-imposed trade sanctions, while Indonesia is trying to promote its palm oil products amid threats of a cut in consumption by European Union countries.

The Council for Mutual Economic Assistance, or COMECON, was a trade bloc that existed from 1949 to 1991 under the leadership of the Soviet Union that comprised the countries of the Eastern Bloc along with a number of communist states elsewhere in the world. It was largely based on barter trade owing to the scarcity of hard currency reserves among the member states.

Today’s Russia is commonly reverting to the system at times when its global trade activities get disrupted by a volatile rouble or by sanctions.

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid