We study the planar spin exchange couplings in LiNiO2 using a perturbative approach. We show that the inclusion of the trigonal crystal field splitting at the Oxygen sites leads to the appearance of antiferromagnetic exchange integrals in deviation from the Goodenough-Kanamori-Anderson rules for this 90 degree bond. That gives a microscopic foundation for the recently observed coexistence of ferromagnetic and antiferromagnetic couplings in the orbitally-frustrated state of LiNiO2 (F. Reynaud et al, Phys. Rev. Lett. 86, 3638).The compound LiNiO 2 which was first synthesized in 1958 [1] is known to be a good ionic conductor and therefore suitable as a material for rechargeable batteries. Despite its wide use as electrode material, its electronic and magnetic structures are not yet completely understood. Especially intriguing is the absence of any kind of long range magnetic or orbital order [2,3] at low temperature even in the purest samples synthesized up to now. That is especially remarkable since the isostructural compound NaNiO 2 shows orbital order and a collective Jahn-Teller transition at T o = 480 K from the trigonal high-temperature phase to the monoclinic low-temperature one, followed by an antiferromagnetic (AFM) order of ferromagnetic (FM) planes at the Néel temperature of T N = 20 K [4,5]. To explain the strange behavior of LiNiO 2 the proposal of an orbital liquid was pursued in terms of the SU(4) model [6,7,8]. There, a symmetry between orbital and spin degrees of freedom is assumed with equal amplitudes for the corresponding coupling terms. In reality, however, the energy scale for orbital interactions is one order of magnitude larger than those for spin exchange interactions as shown by experimental [3] and theoretical studies [9]. This is also indicated by the difference of T o and T N in NaNiO 2 . More in details, the magnetic susceptibility of LiNiO 2 shows a transition at T of = 400 K towards an orbitally frustrated state at low temperature. Given an orbital disorder that is frozen in, the magnetic properties at low temperature can be phenomenologically explained assuming FM exchange couplings between neighbouring orbitals of different kind (J do = (−6.2 ± 2) meV) and AFM couplings between identical ones (J so = (6.9 ± 2) meV) [3]. However, that contradicts seemingly the known Goodenough-Kanamori-Anderson (GKA) rules [10] which allow only FM couplings for the 90 degree Ni-O-Ni bond in LiNiO 2 [9].The trigonal (rhombohedral) crystal structure R3m of LiNiO 2 can be understood by starting from the cubic situation with oxygen and Ni/Li on the sites of the cubes, and with the cubic axesx,ỹ, andz. Perpendicular to the cube diagonal z =x +ỹ +z in fig. 1 one finds alternating planes of Li, Ni, and O. The electronically active NiO 2 layer (see fig. 1) contains a triangular lattice of the magnetic Ni ions. The O 2− ions have a completely filled 2p shell, whereas the Ni 3+ ion is in the low-spin electronic configuration (t 6 2g e 1 g ) with spin 1/2 [3]. The trigonal distortion changes the bond angle fro...