Russia has found a smart way to bypass Western sanctions: Crypto. According to sources of Nieuws Platform Reuters, Russian oil companies use Bitcoin (BTC), Ethereum (ETH) and Stablecoins such as USDT to keep the trade with China and India going.
Although Crypto is currently only a small part of the gigantic $ 192 billion oil trade, it is increasingly gaining ground as an alternative payment method.
The search for alternatives
Since the Western sanctions after the invasion of Ukraine, trade with partners such as China and India has been under a magnifying glass. Banks in these countries are extra careful with transactions linked to Russia, since they are afraid to get under fire themselves.
To circumvent these financial blockages, Russian oil companies use crypto through intermediaries. This way they can easily convert Chinese Yuan and Indian rupees to rubles, without benches being in the way.
According to an initiate, these crypto transactions are now running up to tens of millions of dollars per month. Not surprising, because since December it has been officially permitted in Russia to use digital currencies for international payments. A conscious move from the government to relieve sanction pressure and let the trade go smoothly.
Political and financial developments
In the meantime, the Russian government is fully committed to a broader crypto infrastructure. For example, a tax law was previously adopted that regulates crypto transactions and officially legalized crypto mining. In addition, the Central Bank is experimenting with the Digital Roebel (CBDC), which will be rolled out in phases later this year. A clear indication that Russia is preparing for a future in which cryptos play a greater role.
Russia follows the example of other countries, such as Iran and Venezuela, who have already used Crypto to circumvent economic limitations. Digital assets are increasingly being used as an alternative in international trade, especially by countries that fall outside the traditional financial system.
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Source: https://newsbit.nl/rusland-gebruikt-crypto-in-oliehandel-om-onder-sancties-uit-te-komen/
