Russia Utilizes Crypto for Oil Exports to China and India
Russia is using cryptocurrencies such as Bitcoin, Ethereum and Tether to facilitate oil exports to China and India, circumventing Western sanctions.
According to reports, Russia has started using cryptocurrencies as a payment method for its oil transactions. Four sources with direct knowledge of the matter stated that Bitcoin, Ethereum and Tether are being used to circumvent sanctions imposed by the United States.
Although Russia has encouraged the use of cryptocurrencies and passed a law allowing digital currency payments in international trade, until now there had been no reported use of cryptocurrencies in oil trade.
Russia Makes Payments in Cryptocurrencies
Sources have reported that Russia is using BTC, ETH and USDT to convert the Chinese yuan and Indian rupee into roubles. However, this represents a small fraction compared to Russia's growing oil sector, which according to the International Energy Agency (IEA) has reached a value of around $192 billion in 2024.
Cryptocurrencies have already enabled countries such as Iran and Venezuela to maintain their operations by limiting the use of the dollar, the most widely used currency in the global oil trade.
This development comes as Venezuela is increasing its use of digital currencies for fuel exports after the United States reimposed sanctions on the country.
According to an anonymous source, a researcher at a company that monitors the use of cryptocurrencies to circumvent sanctions, Russia has already implemented USDT (Tether) as a payment system for these transactions.
Russian federal agencies have not yet made official comments on the matter. However, it has been stated that payment delays occurred last year due to the sanctions imposed, creating difficulties for the Russian economy.
President Trump is trying to improve relations with Russia by pushing for an end to the war in Ukraine. However, it is unclear whether the sanctions will be lifted. The White House has reportedly been considering more lenient options, but Trump said on 7 March that he is considering even tougher sanctions against Russia.
One of the four sources said that cryptocurrencies will continue to support Russian oil transactions even if the sanctions are lifted, as they are a flexible tool to optimise transactions.
The sources also explained the mechanism of these cryptocurrency transactions. According to their statements, an Indian buyer of Russian oil pays a trading company that acts as an intermediary. This company converts the payment into cryptocurrency and sends it to a Russian account, which then converts it back into roubles.
Traditional currencies continue to support the Russian oil sector, however, with alternative solutions such as the use of the UAE dirham. According to analysts at the UK's Royal United Services Institute and the Centre for Information Resilience, cryptocurrencies are just one of many methods used to overcome payment restrictions. The adoption of cryptocurrencies in the Russian commercial sector shows that these digital tools have the potential to revolutionise transactions, regardless of bans.
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According to reports, Russia has started using cryptocurrencies as a payment method for its oil transactions. Four sources with direct knowledge of the matter stated that Bitcoin, Ethereum and Tether are being used to circumvent sanctions imposed by the United States.
Although Russia has encouraged the use of cryptocurrencies and passed a law allowing digital currency payments in international trade, until now there had been no reported use of cryptocurrencies in oil trade.
Russia Makes Payments in Cryptocurrencies
Sources have reported that Russia is using BTC, ETH and USDT to convert the Chinese yuan and Indian rupee into roubles. However, this represents a small fraction compared to Russia's growing oil sector, which according to the International Energy Agency (IEA) has reached a value of around $192 billion in 2024.
Cryptocurrencies have already enabled countries such as Iran and Venezuela to maintain their operations by limiting the use of the dollar, the most widely used currency in the global oil trade.
This development comes as Venezuela is increasing its use of digital currencies for fuel exports after the United States reimposed sanctions on the country.
According to an anonymous source, a researcher at a company that monitors the use of cryptocurrencies to circumvent sanctions, Russia has already implemented USDT (Tether) as a payment system for these transactions.
Russian federal agencies have not yet made official comments on the matter. However, it has been stated that payment delays occurred last year due to the sanctions imposed, creating difficulties for the Russian economy.
President Trump is trying to improve relations with Russia by pushing for an end to the war in Ukraine. However, it is unclear whether the sanctions will be lifted. The White House has reportedly been considering more lenient options, but Trump said on 7 March that he is considering even tougher sanctions against Russia.
One of the four sources said that cryptocurrencies will continue to support Russian oil transactions even if the sanctions are lifted, as they are a flexible tool to optimise transactions.
The sources also explained the mechanism of these cryptocurrency transactions. According to their statements, an Indian buyer of Russian oil pays a trading company that acts as an intermediary. This company converts the payment into cryptocurrency and sends it to a Russian account, which then converts it back into roubles.
Traditional currencies continue to support the Russian oil sector, however, with alternative solutions such as the use of the UAE dirham. According to analysts at the UK's Royal United Services Institute and the Centre for Information Resilience, cryptocurrencies are just one of many methods used to overcome payment restrictions. The adoption of cryptocurrencies in the Russian commercial sector shows that these digital tools have the potential to revolutionise transactions, regardless of bans.
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