In a significant legislative move, Russian lawmakers have passed a bill that would allow companies to use Bitcoin and other cryptocurrencies in international trade, according to a report by ReviewersThe development comes as part of Russia’s strategy to circumvent Western sanctions imposed in the wake of its invasion of Ukraine. The new law, which is expected to come into effect in September, aims to address delays in international payments, particularly with major trading partners such as China, India and the United Arab Emirates.
BREAKING: 🇷🇺 Russian lawmakers have passed a bill allowing companies to use #Bitcoin Cryptocurrencies in International Trade – Reuters pic.twitter.com/yFExWcIG9k
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Central Bank Governor Elvira Nabiullina, a supporter of the law, said the first cryptocurrency transactions would take place before the end of the year. The central bank will work on creating a “pilot” infrastructure for such payments, with more details awaited.
“The risks of secondary sanctions have increased, they make it difficult to pay for imports, and this concerns a wide range of goods,” Nabiullina added.
The legislation also includes rules on cryptocurrency mining and trading of other digital assets, but maintains a ban on cryptocurrency payments within Russia. The central bank said payment delays caused Russian imports to fall by 8% in the second quarter of 2024.
Despite efforts to switch to the currencies of trading partners and develop an alternative payment system for the BRICS group, many transactions still rely on dollars and euros via the SWIFT system, exposing Russia to secondary sanctions. Nabiullina stressed that these sanctions have complicated import payments, expanded supply chains and increased costs.
The decision by Russian lawmakers is aimed at mitigating the economic challenges posed by sanctions and ensuring smooth international trade. “We are making a historic decision in the financial sphere,” State Duma Speaker Anatoly Aksakov reportedly told lawmakers by passing the legislation.
