Russia Increasingly Turns to Crypto for Oil Trade Amid Sanctions
While traditional fiat currencies remain dominant, cryptocurrencies are emerging as a flexible tool for Russia’s international oil transactions, according to a Reuters report citing sources familiar with the matter.
Crypto’s Role in Russia’s $192 Billion Oil Trade
Russia is reportedly using Bitcoin (BTC), Ethereum (ETH), and stablecoins like Tether (USDT) to facilitate payments in its $192 billion oil trade, particularly with China and India. These digital assets help convert payments made in Chinese yuan and Indian rupees into rubles, allowing Russia to bypass Western sanctions.
This shift comes as Russia expands its involvement in digital assets. The Bank of Russia recently proposed a three-year experimental legal regime (ELR) that would allow a select group of Russian investors to trade cryptocurrencies.
Crypto as a Sanctions Workaround
Russia is not alone in leveraging digital assets to navigate financial restrictions. Other sanctioned nations, including Iran and Venezuela, have also turned to crypto to sustain trade while avoiding reliance on the U.S. dollar, the dominant currency in global oil markets.
Beyond crypto, Russia has developed multiple payment systems to circumvent sanctions. Reuters notes that fiat currencies—such as the UAE dirham—remain the primary method used in oil transactions.
Russia’s Long-Term Crypto Strategy
Even if sanctions were lifted, the report suggests that Russia would likely continue using crypto due to its convenience and flexibility in cross-border trade. Meanwhile, the country is actively working to expand its digital ruble, encouraging its largest banks to support the ruble-backed central bank digital currency (CBDC) for both retail and commercial use.
The Bank of Russia first proposed the digital ruble as a potential tool against sanctions in 2021, reinforcing the country’s long-term commitment to digital assets as part of its financial strategy.
