Russia has started using cryptocurrencies like Bitcoin and Ethereum to facilitate oil transactions with China and India, sidestepping Western sanctions. The deals involve converting local currencies into rubles, with stablecoins also playing a role.
The shift began in December after Russia adjusted its legal framework to allow cryptocurrency use in cross-border payments. This move was a response to trade disruptions caused by sanctions imposed after the Ukraine conflict. In September, Chainalysis highlighted the central bank’s push to develop crypto systems as a workaround for these restrictions.
The central bank has launched a three-year trial permitting accredited investors to engage in crypto trading, with domestic payments remaining prohibited. A tax measure on crypto trades and mining was also enacted in November, setting rates at 13% for earnings up to 2.4 million rubles and 15% above that.
Russia is not the only country to adopt cryptocurrencies for trade; Iran and Venezuela have also followed suit. The central bank is preparing to introduce the digital ruble in stages this year.
Source: https://in.benzinga.com/markets/cryptocurrency/25/03/44330826/vladimir-putin-said-nobody-can-ban-bitcoin-now-russia-reportedly-leverages-btc-to-evade-sanctions-when-selling-oil-to-china-india