Sanctioned Russia Adopts Crypto for Oil Deals, According to Reuters

Russia Expands Crypto Use in Oil Trade to Circumvent Sanctions

While fiat currencies still dominate global trade, Russia has increasingly turned to cryptocurrencies to facilitate oil transactions with China and India, effectively bypassing Western sanctions, according to Reuters.

Crypto’s Role in Russia’s $192 Billion Oil Industry

With global financial restrictions limiting Russia’s access to traditional payment networks, some Russian oil firms have begun using Bitcoin (BTC), Ethereum (ETH), and stablecoins like Tether (USDT) to convert payments in Chinese yuan and Indian rupees into rubles. Though still a fraction of overall transactions, crypto’s presence in Russia’s oil trade is growing.

Simultaneously, Russia is expanding its crypto regulatory framework. The Bank of Russia recently proposed a three-year experimental legal regime (ELR) that would allow a small group of Russian investors to engage in controlled cryptocurrency trading.

Russia Follows the Path of Other Sanctioned Nations

Russia is not the first country to turn to crypto as a workaround. Iran and Venezuela have previously leveraged digital assets to conduct international trade while sidestepping U.S. dollar dependency and financial sanctions.

Despite crypto’s rising role, fiat alternatives remain the primary method for Russian oil transactions. Reuters notes that Russia also utilizes other currencies, such as the UAE dirham, to conduct business in energy markets.

A Long-Term Shift Toward Digital Assets?

Even if sanctions were lifted, the report suggests that Russia may continue using crypto due to its flexibility in cross-border trade. Meanwhile, the country is accelerating the development of its digital ruble, encouraging its largest banks to integrate the central bank digital currency (CBDC) for retail and commercial transactions.

The Bank of Russia has long considered the digital ruble a strategic financial tool, first proposing it in 2021 as a potential defense against economic sanctions. As geopolitical tensions persist, crypto is expected to remain a key component of Russia’s evolving financial strategy.