Russia Uses Cryptocurrencies in Oil Trade with China and India to Evade Sanctions
Russia has begun using cryptocurrencies such as Bitcoin, Ether, and Tether in its oil trade with China and India to bypass Western sanctions, according to multiple sources. While Moscow has publicly supported digital currency use in international trade, this marks the first time its involvement in the oil sector has been revealed. The move mirrors strategies used by other sanctioned countries like Iran and Venezuela, enabling Russia to facilitate transactions without relying on the U.S. dollar.
Sources indicate that Russian oil firms use crypto to convert Chinese yuan and Indian rupees into Russian roubles through intermediaries, making transactions more efficient and difficult to track. In some cases, a Chinese buyer pays in yuan to a middleman, who then converts it into crypto before transferring it to Russian accounts for conversion into roubles. These transactions reportedly reach tens of millions of dollars monthly, though traditional currencies still dominate Russian oil trade.
Despite ongoing U.S. sanctions, cryptocurrencies provide Russia with an alternative payment method that could persist even if restrictions ease. The use of digital assets has drawn increased scrutiny, with platforms like Garantex facing U.S. and EU sanctions, leading to the suspension of services. Analysts suggest that while crypto is a growing tool in Russia’s trade, other mechanisms, such as using the UAE dirham, remain prevalent.
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