Last updated on March 15th, 2025 at 07:50 am
Russian oil companies are increasingly using cryptocurrencies to bypass Western sanctions and facilitate transactions with China and India, according to Reuters.
Some firms are reportedly using Bitcoin (BTC), Ethereum (ETH), and stablecoins like Tether (USDT) to convert Chinese yuan and Indian rupees into Russian rubles. While still a small portion of total trade, the practice is expanding as companies seek alternative payment solutions.
Notably, this trend extends beyond oil. In 2024, Bloomberg reported that Russia’s two largest unsanctioned metal producers began using USDT for cross-border deals with Chinese clients and suppliers. This shift followed U.S. Treasury warnings about secondary sanctions on financial institutions facilitating sanctions evasion. At the time, these companies’ executives revealed that some transactions were routed through Hong Kong, though the total volume remains undisclosed.
Reuters also reported that USDT is just one of several crypto-based systems Russia is using for international trade.
In response to challenges from sanctions, the Russian government established a specialized focus group last year to explore cryptocurrency use for foreign trade payments under an experimental legal framework. The government stated that the initiative aims to assist importers struggling with bank transactions in China and other countries due to the nature of their goods.
According to local media outlet Vedomosti, this group includes representatives from the Chamber of Commerce and Industry, the Association of Developers and Producers of Electronics, and several banks, with larger companies receiving priority consideration.
Also, in July 2024, it was reported that the Bank of Russia was reportedly considering legalizing stablecoins for cross-border transactions to ease the challenges due to the economic sanctions. Alexei Guznov, the Bank’s deputy governor, explained the aim was to establish a framework that would allow individuals to transfer these assets into Russia, accumulate them domestically, and use them for international payments.
On a broader scale, the Russian government is actively working to boost crypto adoption locally and also regulate it. On March 14, Deputy Finance Minister Ivan Chebeskov confirmed that the Ministry of Finance is developing a legal framework for a national crypto infrastructure in collaboration with the Bank of Russia.
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