14.03.2025 13:21
Russian oil companies are using cryptocurrencies like Bitcoin and Tether's USDT to circumvent global sanctions. Sources close to the matter have confirmed that tens of millions of dollars in transactions are being conducted monthly through crypto assets in oil trade with China and India.
Russia, which has been pushed out of the global financial system, has developed an alternative payment mechanism through cryptocurrencies. This system, carried out using offshore accounts and intermediary companies, allows Russia to continue its oil trade with important trading partners like China and India. This situation reveals that cryptocurrencies can be used not only as an investment tool but also as an alternative to the traditional financial system.
Bitcoin and USDT Have Become the New Instruments of Russian Oil Exports
Russian oil companies are using cryptocurrencies such as Bitcoin (BTC) and Tether's USDT stablecoin to bypass international sanctions. According to a new report by Reuters, Russia is conducting transactions worth tens of millions of dollars monthly through crypto assets in its oil trade with China and India. Sources close to the matter indicate that this method will continue due to its speed and efficiency advantages, even if sanctions are lifted.
In a report dated March 14, Reuters detailed how Russian oil trade is conducted through cryptocurrencies. The report, based on four sources with direct knowledge of the matter, states that a Russian oil trader is conducting transactions worth tens of millions of dollars monthly using digital assets.
Regarding how the transactions are carried out, Reuters reports that intermediaries play a significant role in Russia's external oil trade. For example, a Chinese buyer pays an intermediary trading company in yuan for Russian oil. The intermediary company converts this payment into crypto assets and sends it to another account. In the final stage, the funds reach a third account in Russia and are converted into Russian rubles.
According to sources, due to the speed and efficiency advantages offered by cryptocurrencies, this method will continue even if sanctions are lifted and Russia could freely use the dollar. One source stated, "This is a useful tool and helps to conduct operations faster."
The news was shared during a period when the Central Bank of Russia proposed to legalize cryptocurrency investments for high-net-worth individuals with at least $1.1 million in securities and deposits.
While Russia's approach to adopting blockchain technology and cryptocurrencies in foreign trade is increasing, mainland China banned almost all crypto transactions in 2021. Nevertheless, China remains among the global leaders in Bitcoin mining. Hong Kong, on the other hand, has become a global crypto hub as a neighboring jurisdiction.