Russian commodity companies are reportedly employing the popular stablecoin known as USDT for financial dealings with Chinese entities. According to Bloomberg, citing insights from senior officials within these companies, at least two metal producers in Russia are utilizing Tether-issued stablecoin USDT along with other cryptocurrencies to facilitate cross-border transactions with Chinese partners. These companies, despite not being subjected to sanctions, are said to occasionally channel settlements through Hong Kong.

In the aftermath of Russia's invasion of Ukraine in 2022, Chinese financial institutions refrained from imposing sanctions on Russian firms. However, Chinese lenders have reportedly heightened their compliance protocols as a precaution against potential secondary sanctions implicated for engaging with Russian counterparts.

USDT, recognized as the leading stablecoin based on market capitalization, endeavors to sustain a 1:1 peg to the US dollar. Ivan Kozlov, a co-founder at Resolv Labs in the crypto sector, informed Bloomberg that executing cross-border transactions using dollar-pegged stablecoins is a prevalent strategy in nations grappling with dollar liquidity constraints and capital control regulations. Kozlov highlighted the efficiency of stablecoin transactions, emphasizing the swift transfer duration of 5-15 seconds and minimal costs, particularly advantageous when the sender already holds assets in stablecoins.

Furthermore, certain Russian steel manufacturers are reportedly opting out of cross-border transactions entirely and opting to export their goods overseas in return for imports brought into Russia, as per Bloomberg's findings.