Russia is forced to use cryptocurrencies and barter deals to trade with China - Bloomberg
Kyiv • UNN
Russian companies facing difficulties in trading with China due to Western sanctions are increasingly using cryptocurrencies such as Tether and barter transactions to circumvent financial restrictions.
Against the backdrop of Western sanctions, it is becoming increasingly difficult for Russians to make payments in trade with China. Some companies have even started using cryptocurrencies, and some have simply switched to barter trade. Bloomberg reports, UNN reports.
Details
Sources Bloomberg in Russian companies say that at least two major metal producers, both of which are not under sanctions, have started using the Tether stablecoin. In some cases, payments are made through Hong Kong.
The publication emphasizes that the transition of large Russian companies to blockchain indicates the long-term impact of international restrictions in response to the war on the economy.
It is noted that since the beginning of the war, Russian companies trading in metals and wood have been facing problems with receiving payments for their goods and purchasing equipment and raw materials.
Even though China has not joined the sanctions and has become the main export market for many Russian goods, financial transactions are still difficult for companies from Russia. This was particularly influenced by the statement of the US Treasury Department, which warned of secondary sanctions for lenders who help Russian businesses evade sanctions.
Meanwhile, some commodity firms have chosen a different route to settle their transactions, which was also once considered exotic. According to the newspaper's sources, some metallurgical companies use so-called barter deals, under which goods are exchanged for goods supplied to Russia, avoiding cross-border transportation entirely.
Addendum
In , Bloomberg explained that the use of cryptocurrency for payments is not unusual for countries under sanctions.
In particular, transactions involving cargoes from Venezuela, home to the world's largest proven oil reserves, are increasingly being carried out using Tether. Many of the deals - which come at deep discounts - are made through intermediaries in Dubai.
Analysts say that the growing role of cryptocurrencies in payments also indicates a change in the Russian central bank's approach to this industry, as in 2022 Moscow considered options for banning cryptocurrencies.
Recall
U.S. Secretary of State Anthony Blinken said that Beijing, though not directly, is supporting Russia in rebuilding its military-industrial complex. Most of the components, namely military electronics, that Russia receives come from China.
