Russia Begins Using Cryptocurrency to Bypass Western Sanctions in Oil Trade: Reuters
While fiat money remains the primary method of payment, cryptocurrencies are seen as a convenient and adaptable tool for making transactions.
Francisco Rodriguez | Edited by Aoyon Ashraf March 14, 2025 13:57 UTC
Key points:
- According to the community, Russian oil companies are using Bitcoin, Ethereum, and USDT to exchange Chinese Yuan and Indian Rupees for rubles.
- Cryptocurrency transactions make up a small but growing share of Russia's $192 billion oil trade.
- Traditional currencies such as the UAE dirham continue to be the main means of payment.
Russia has turned to cryptocurrencies to facilitate oil trade with China and India, effectively circumventing $192 billion in Western sanctions, Reuters reported, citing people familiar with the matter.
The country is slowly moving towards cryptocurrency. This week, the Central Bank of Russia announced proposals to create an experimental legal regime (ELR) for three years that would allow “a limited group of Russian investors” to engage in cryptocurrency transactions.
Some Russian oil companies are using bitcoin, ether and stablecoins such as Tether (USDT) to exchange payments made in Chinese yuan and Indian rupees for rubles, Reuters reports. These transactions are now part of Russia's oil trade.
Other sanctioned countries, such as Iran and Venezuela, have used cryptocurrency to support their trade while avoiding reliance on the US dollar, the main currency in global oil markets.
Russia has developed several payment systems to circumvent sanctions, and cryptocurrency is one of many tools the country has used. Fiat money remains the main method used in Russian oil deals, and alternative routes include using currencies such as the UAE dirham, according to Reuters.
The report also added that even if sanctions are lifted, Russia will likely continue to use cryptocurrency in its oil trade, as it is seen as a convenient and adaptable tool. At the same time, the country is looking to convince its largest banks to support the digital ruble for retail and commercial use.
The Bank of Russia said back in 2021 that a central bank digital currency backed by the ruble could serve as a tool to counter sanctions.
Read more: US-sanctioned countries like Iran are actively using cryptocurrency: Chainalysis
