Key Points
- Russia reportedly uses crypto in oil trades with China and India to circumvent Western sanctions.
- The news comes after the Central Bank of Russia allowed limited crypto transactions.
Accoridng to the latest reports from sources cited by the Reuters press agency, Russia is using Bitcoin and other digital assets in its oil trade with China and India to circumvent Western sanctions.
Russia is Using BTC, ETH, and Stablecoins in Oil Trades
Reuters reported that some Russian oil companies are using Bitcoin, Ethereum, and stablecoins such as USDT to smooth the conversion of Chinese yuan and Indian rupees to Russian rubles.
This is a small but growing part of Russia’s overall oil trade, which was reportedly worth $192 billion in 2024, according to the International Energy Agency.
Reuters also reported that crypto has already helped enable countries that are currently under US sanctions, including Iran and Venezuela to keep their economies running while avoiding the US dollar.
Russia made this move after Venezuela also boosted crypto use in crude and fuel exports, following Washington’s actions, Reuters notes.
The press agency also highlighted that the US President, Donald Trump, is currently making efforts to improve relations with Russia while supporting the end of the Ukraine war.
Reuters also said, citing sources familiar with the situation, that Russia will most likely continue using crypto in oil trading, even if sanctions are lifted, as digital assets are convenient and help operations run faster.
The news comes after the Russian Central Bank officially allowed limited crypto operations.
Russia Supports Bitcoin and Crypto Adoption
Recently, it was reported that the Russian Central Bank allows investors to buy crypto in a controlled manner. The rule applies only to specially qualified individuals, investors, and corporations.
Derivatives and securities investments are also allowed, while a special experimental legal regime will be reportedly introduced in the country for three years.
In November 2024, Russian President, Vladimir Putin, signed a Bitcoin and crypto tax regulation law, further supporting digital assets adoption in the country.
Bitcoin and crypto are seeing increased global support which brings more optimism to the markets.
