Russian companies, including major oil traders, are increasingly using cryptocurrencies such as Bitcoin and Tether’s USDT to conduct international trade with China and India.
Citing sources with direct knowledge of the transactions, Reuters reported on March 14 that Russian oil firms are turning to digital assets to circumvent international sanctions.
One oil trader allegedly carries out monthly transactions worth tens of millions of dollars using cryptocurrency, a source confirmed under anonymity due to a non-disclosure agreement.
The shift toward crypto comes after Russia’s finance minister publicly declared in late 2024 that the country was free to use Bitcoin and other digital assets for foreign trade.
However, this is the first time reports have emerged detailing their use in oil transactions with China and India.
Although crypto-based deals represent only a fraction of Russia’s $192 billion oil trade, sources described the trend as growing.
A typical transaction involves a Chinese buyer paying a middleman in yuan, who then converts the funds into cryptocurrency before transferring them to a Russian account, where they are exchanged for rubles.
Reuters further detailed that offshore intermediaries play a key role in these transactions.
Chinese buyers send yuan payments to offshore accounts, which are then converted into crypto and sent to a third-party account in Russia before being exchanged into rubles.
One source suggested that cryptocurrency is likely to remain a fixture in Russia’s foreign oil trade, stating, “It is a convenient tool and helps run operations faster.”
Through this growing adoption, the Bank of Russia has proposed legalising cryptocurrency investments for high-net-worth individuals, defined as those holding at least $1.1 million in securities and deposits.
Russia is not the first country to use digital assets to sidestep financial restrictions in the oil sector.
Iran and Venezuela have also leveraged cryptocurrencies to facilitate transactions and reduce reliance on the U.S. dollar.
Venezuela’s use of digital currencies increased after the U.S. reimposed sanctions on the country’s oil industry.
While crypto is playing a growing role in Russia’s oil trade, it remains just one of several strategies the country is using to navigate financial restrictions, according to a Kremlin adviser and analysts cited by Reuters. Traditional currencies, including the UAE dirham, are still widely used.
Meanwhile, US foreign policy under President Donald Trump could influence future developments. Trump has expressed a willingness to improve relations with Russia while working toward a resolution in Ukraine.
Although his administration is reviewing its stance on sanctions, he recently stated on March 7 that additional measures against Moscow are under consideration.
However, Trump’s pro-crypto stance and Russia’s increasing reliance on digital assets could create an unusual common ground between the two nations.
Regardless of any shifts in policy, cryptocurrency appears set to remain a key tool in Russia’s oil trade for the foreseeable future.
