Russia Turns to Cryptocurrency to Skirt Sanctions in Oil Trade

Russia is using cryptocurrency to facilitate oil trade with China and India, bypassing Western sanctions.

According to Reuters on March 14, Russian oil companies are using digital assets such as Bitcoin, Ethereum, and stablecoins like Tether to convert Chinese yuan and Indian rupees into Russian rubles.

The scheme involves an intermediary receiving yuan payments into an offshore account, converting them into cryptocurrency, and transferring the funds to Russia, where they are exchanged for rubles.

One Russian oil trader reportedly conducts cryptocurrency transactions worth tens of millions of dollars monthly. The sources also suggested that cryptocurrencies are likely to remain a part of oil trading even if sanctions are lifted, as they enable faster transactions.

Although Russia has publicly supported cryptocurrency use and passed a 2024 law allowing crypto payments in international trade, its application in oil transactions had not been previously disclosed.

Earlier, US President Donald Trump said negotiations with Russia on a potential 30-day ceasefire in Ukraine have included discussions on territorial issues and a major power facility, likely the Zaporizhzhia Nuclear Power Plant.