Russia Turns to Crypto in Oil Trade to Work Around Sanctions
While fiat currencies remain dominant, Russia is increasingly utilizing cryptocurrencies to facilitate oil transactions with China and India, helping the country circumvent Western sanctions, according to Reuters.
Crypto’s Expanding Role in Russia’s Energy Trade
With global sanctions restricting Russia’s access to traditional financial systems, some Russian oil companies are turning to Bitcoin (BTC), Ethereum (ETH), and stablecoins like Tether (USDT) to convert yuan and rupees into rubles. While crypto transactions still make up only a small share of Russia’s $192 billion oil trade, their use is steadily growing.
This shift aligns with Russia’s broader push into digital assets. Just this week, the Bank of Russia proposed a three-year experimental legal regime (ELR) to allow a select group of Russian investors to trade cryptocurrencies under controlled conditions.
Crypto as a Sanctions Workaround
Russia’s crypto strategy mirrors those of Iran and Venezuela, both of which have leveraged digital assets to bypass reliance on the U.S. dollar and maintain international trade despite sanctions.
That said, Russia continues to use fiat alternatives, with Reuters noting that the UAE dirham remains one of the primary currencies used in its oil sales.
The Future of Crypto in Russian Trade
According to the report, Russia may continue using crypto even if sanctions are lifted, given its advantages in facilitating global transactions. At the same time, the country is fast-tracking the development of its digital ruble, with major banks preparing to integrate a central bank digital currency (CBDC) for commercial and retail use.
The Bank of Russia first introduced the digital ruble concept in 2021, positioning it as a potential tool against economic restrictions. As international financial landscapes evolve, crypto is likely to play an increasingly strategic role in Russia’s global trade operations.
