It Turns Out That Russia Is Using Cryptocurrency For Trade With China And One More Country! - Coin Newsletter

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Russia has turned to cryptocurrencies to circumvent Western sanctions in its oil trade with China and India.

According to Reuters, citing sources familiar with the matter, Russia has increased the use of cryptocurrencies as a means of payment in oil trade with China and India. In order to circumvent the economic sanctions imposed by Western countries, some Russian oil companies are using popular cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and Tether (USDT)** to convert Indian rupees into Russian rubles. Thanks to this, it is noted that traditional banking systems are completely disabled in Russia's financial transactions.

It is stated that the use of cryptocurrencies in oil trading plays a critical role in Russia's overcoming economic isolation. Sources said that after the sanctions imposed by the United States, Iran and Venezuela have resorted to similar methods to keep their economies alive. In fact, Venezuela has significantly increased its use of digital currencies in oil and fuel exports in the wake of U.S. sanctions.

Due to the sanctions imposed by Western countries, especially on the energy sector, there are serious payment problems in Russia's foreign trade. At this point, Russian companies started to look for new solutions after the restriction of payments made through banks. Cryptocurrencies, on the other hand, have come to the fore as an ideal alternative to overcome this problem.

Russia's use of cryptocurrencies in oil trading is not limited to India. According to the information shared by the sources, a Chinese oil buyer first transfers the yuan payment to an intermediary company when purchasing Russian oil. The company, in turn, converts this payment into crypto, transfers it to an account in Russia, which is then converted into rubles. With this method, a single Russian oil trader's sales to China generate tens of millions of dollars in crypto transactions per month.

However, experts emphasize that the use of traditional currencies is still dominant in Russia's oil trade.

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