As global sanctions continue to restrict financial dealings of Russia, crypto has emerged as a crucial tool for facilitating international trade. According to a Reuters report, Russian oil companies are increasingly turning to Bitcoin (BTC) and Tether (USDT) to bypass restrictions and settle transactions with key partners in China and India. Multiple sources with direct knowledge of the matter reveal that at least one major Russian oil trader handles tens of millions of dollars worth of crypto transactions monthly. These deals, previously undisclosed, highlight a growing trend in sanctioned economies using digital assets to circumvent traditional financial barriers. Russia’s finance ministry had publicly acknowledged in late 2024 that Bitcoin could be used for foreign trade, but the extent of its application in oil transactions had remained under wraps—until now. How Crypto Is Powering Russia Oil Exports Reuters’ investigation sheds light on the intricate web of intermediaries managing these transactions. Instead of direct crypto payments between Russia’s oil exporters and buyers, a multi-step process ensures anonymity and efficiency: A Chinese buyer of Russian oil makes a payment in yuan to an offshore account managed by a trading company. This intermediary converts the yuan into cryptocurrency, typically USDT or BTC. The funds are then transferred to another account, which routes them to a third account in Russia before converting the funds into rubles. This indirect approach allows Russian firms to sidestep Western-controlled financial networks, which have largely cut off the country from dollar-based transactions. Crypto’s Role in Global Trade Beyond Sanctions One of Reuters’ sources suggests that Russia’s use of crypto in oil trading isn’t just a reaction to sanctions—it’s a long-term strategy. Even if restrictions are lifted, digital assets provide a faster and more efficient way to settle international transactions, reducing reliance on Western banking systems. Meanwhile, Russia’s stance on cryptocurrency continues to evolve. The Bank of Russia recently proposed allowing high-net-worth individuals with at least $1.1 million in assets to invest in crypto, signaling a shift in regulatory approach. Despite banning most crypto transactions in 2021 , China remains a leader in Bitcoin mining. Some experts speculate that as Bitcoin’s role in global finance grows, China may reconsider its stance, especially with reports suggesting that the Chinese government holds at least 193,000 BTC. The post Sanctions Push Russia Toward Crypto in Oil Trade With China and India appeared first on TheCoinrise.com .
