Russian oil companies have begun using cryptocurrencies actively to bypass Western sanctions and currency barriers.
Cryptocurrencies Serving Russian Oil
Faced with Western sanctions, Russian oil firms have turned to cryptocurrencies like Bitcoin, Ethereum, and stablecoins to move funds between China and India.
Examples of Crypto Use in Trade
For example, a Chinese buyer transfers yuan to an offshore account, which is then converted into crypto and sent to Russia for conversion to rubles. According to one source, a Russian oil trader's crypto transactions reach tens of millions of dollars per month.
Regulatory Reaction and Prospects
The Russian Central Bank proposed a regulatory framework for cryptocurrency investments, limiting participation to 'qualified' investors. Meanwhile, Russia's largest unsanctioned metal producers have also started using Tether for international transactions.
The use of cryptocurrencies helps Russian companies adapt to sanctions, yet raises questions about the need for stricter financial regulation.
