Amid the ongoing war sanctions in Ukraine, Russia has turned into bitcoin and other cryptocurrencies to facilitate some of its oil trade with the main buyers in China and India.
according to Reuters reportRussian oil companies and merchants are increasingly conducting transactions in Bitcoin and Crypto, allowing them to defraud restrictions from Western countries. The sources say that the monthly trade volumes are already present in tens of millions of dollars.
The mechanism includes Chinese buyers or Indians who buy oil and deposit yuan or rupees in an external account owned by a mediator company. The mediator then turns the Fiat currency to encryption and transferred it to an account in Russia, where it is exchanged to rubles.
While the encryption -based oil payments are still a small part of the total oil trade in Russia, this practice grows with sanctions. The trend highlights the Bitcoin and Crypto benefit in enabling the settlement of transactions for the approved countries. Iran and Venezuela adopted similar encryption strategies. Control resistance in Bitcoin and Crypto allows the transfer of value outside the scope of sanctions.
In late 2024, Russian Finance Minister Publicly dependent Using encryption in foreign trade. Kremlin Bitcoin and Crypto sees as one of several effective strategies to overcome the financial sanctions imposed on the invasion of Ukraine. The Bank of Russia recently proposed to legalize encryption investments for wealthy citizens.
However, Russia's oil trade still depends mainly on Fiat currencies. President Donald Trump's administration discusses whether it will reduce some restrictions to improve relations with Moscow.
As the conflict continues in Ukraine, it seems that the Russian axis towards benefiting from bitcoin and decentralized technologies aims to reduce its dependence on traditional financing and settlements in dollars. Other countries are probably monitored under US sanctions.
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