In the summer of 2024, a law was adopted in the Russian Federation that allows payments in digital currency in international trade. To circumvent sanctions and conduct foreign trade with China and India, Russian oil companies rely on cryptocurrency.
UNN reports with reference to Reuters.
For oil trade, Russia relies on cryptocurrencies, which are used in particular to smooth the conversion of yuan and rupees into rubles.
According to Reuters, Russian companies use cryptocurrencies such as:
- bitcoin;
- USDT (Tether cryptocurrency token);
- ether;
- stablecoin.
Previously, Russia publicly encouraged the use of cryptocurrency and passed a law last summer allowing payments in digital currency in international trade, its use in the country's oil trade has not been previously reported.
Regarding Russia's cryptocurrency settlements in oil trade, Reuters writes that this is a small but growing share of total trade.
According to the International Energy Agency, this link amounted to $192 billion last year.
Addition
Crypto will likely continue to be used in Russian oil trading, one of the four sources said, even if sanctions are lifted and the dollar can be used again. It's a convenient tool that helps perform operations faster, they added.