Western sanctions have pushed Russian oil firms to explore new financial avenues. They are now using cryptocurrencies like Bitcoin, Ethereum, and stablecoins to convert chinese yuan and Indian rupees into Russian roubles. This strategy helps them maintain trade despite restrictions.
According to sources, some companies are leveraging Bitcoin, Ethereum, and Tether to facilitate these transactions. The process involves a Chinese buyer paying in yuan to an offshore account. The funds are then converted into crypto and transferred through various accounts before being converted into roubles in Russia.
While crypto transactions are growing, they still represent a small portion of Russia’s oil trade. One trader reportedly handles tens of millions of dollars in crypto transactions monthly. This shift highlights the increasing role of cryptocurrencies in international trade.
The bank of Russia has proposed a regulated framework for crypto investments. This plan would limit participation to qualified investors with significant assets or income. This move aims to control the growing crypto market.
In May 2024, Bloomberg reported that Russia’s top metal producers started using Tether’s USDT for cross-border transactions with China. This change came after U.S. Treasury warnings about secondary sanctions. Some transactions now go through Hong Kong, though the exact trade volume remains unclear.
