Russia is using Bitcoin, USDT and other cryptocurrencies to trade oil with China and India to evade Western sanctions.
Russia relies on digital assets to trade international oil
according to ReutersRussia has begun using cryptocurrencies as a payment method for oil transactions with China and India. This move is seen as a way to evade Western economic sanctions, which complicates international financial transactions using the US dollar or traditional payment systems.
Russia uses cryptocurrencies to create Western sanctions in oil trade with China and India.
– Reuters (@reuters) March 14, 2025
Specifically, some Russian oil companies are leveraging cryptocurrencies such as Bitcoin BTCEthereum ethand stablecoins (e.g. Tether – USDT USDT) Transactions with these two countries. The process usually involves the intermediary switching between each payment method. For example, a Chinese oil importer might pay an intermediary to the yuan and convert its amount into bitcoin, then transfer it to Russia and convert it into rubles. Similarly, in India, oil traders will also convert rupees through cryptocurrency to complete payments.
Although this accounts for only a small part of Russia’s $192 billion oil trade (according to the International Energy Agency), the use of cryptocurrencies is growing. This is in line with Russia’s policy and allows the use of digital currencies in international trade. A source suggested the Kremlin also confirmed that cryptocurrencies are one of the solutions to the payment problem under sanctions pressure.
However, it should be noted that the scale and effectiveness of the approach remain limited compared to the massive demand for oil trade in Russia, depending on the willingness of partners such as China and India to adopt cryptocurrencies against traditional currencies.
Russia’s policy on cryptocurrency
The Russian authorities’ stance on digital assets has shifted from prudence to pragmatism and greater openness.
Initially, the Russian central bank strongly opposed cryptocurrencies and proposed a ban on money laundering and financial instability. However, since 2022, with the tightening of Western sanctions, Russia has begun to view digital assets as a tool to bypass financial barriers, especially in international trade, such as oil deals with China and India.
Source: CNBC
By 2024, Russia passed a law that legalizes the use of cryptocurrencies in international trade, reflecting the support of the government, including President Putin. However, from home, Russia maintains strict control: cryptocurrencies cannot replace rubles and are subject to strict regulations. Meanwhile, Russia is developing digital rubles based on blockchain technology under state supervision. All in all, Russian authorities now strategically support digital assets to deal with sanctions and promote trade while retaining control to mitigate risks.
