Russia is using cryptocurrencies in its oil trade with China and India to bypass Western sanctions, according to Reuters. This move, based on information from four sources, comes after Russia introduced new cryptocurrency mining laws in August 2024, ending years of uncertainty.
The country is also experimenting with cross-border crypto payments as a way to avoid using the U.S. dollar for international trade.
The report also suggested that Iran and Venezuela have been allegedly using cryptocurrencies to bypass the U.S. dollar for energy transactions. Russia’s decision follows Venezuela’s increased use of digital currencies for its oil and fuel exports after the U.S. reinstated sanctions.
U.S. President Donald Trump is working to improve ties with Russia and aims to end the war in Ukraine, but it’s still uncertain whether sanctions will be removed. Reuters reported that the White House is exploring options for easing sanctions, though Trump tweeted on March 7 that he is seriously considering imposing more sanctions on Russia.
According to one of the sources, Russia is likely to keep using cryptocurrency for oil trading, even if sanctions are lifted and the dollar is allowed again. They reportedly mentioned that crypto is a useful tool that makes operations quicker.
Also, another source, a researcher at a firm that monitors the use of cryptocurrencies to bypass sanctions, revealed that Russia has set up multiple systems, with USDT (Tether) being just one of them.
