Russia has begun utilizing cryptocurrencies in its oil trade with China and India to circumvent Western sanctions, supported by recent legislative changes.
Cryptocurrencies in Russian Oil Trade
Russian oil companies have started using Bitcoin, Ethereum, and stablecoins such as Tether to convert Chinese yuan and Indian rupees into Russian rubles, speeding up transactions and bypassing restrictions. Quote: "Crypto would likely continue to be used in Russian oil trading, even if sanctions are lifted," one source stated.
Global Use of Cryptocurrencies
Countries like Iran and Venezuela have utilized cryptocurrencies to avoid the dominance of the US dollar in the global oil trade. Russia follows their path, increasing the use of digital currencies in its crude and fuel exports.
Challenges and Limitations
Despite the growing use of crypto, traditional currencies still dominate Russia's oil trade. Some transactions are settled in UAE dirhams. Russian crypto exchange Garantex suspended services after its wallets were blocked.
The use of cryptocurrencies in Russian oil trade signifies a new approach to circumventing sanctions, facing several limitations. This practice is likely to evolve amid changing international economic policies.
