NEWSLETTER
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Russian oil companies are using bitcoin, ethereum and Stablecoins to convert the Yuan and Indian Chinese rupees into rubles for trade as Western sanctions persist.
Before Western sanctions, Russian oil companies are actively resorting to cryptocurrencies to move money between China and India, Reuters, Reuters, Reuters, has learned citing sources close to the matter.
One of the sources says that some Russian oil companies are using bitcoin (btc), ethereum (eth) and stables such as Tether (USDT) to soften the conversion of Chinese yuan and Indian rupees to Russian rubles. Although more companies are using crypto, it still constitutes a small part of Russia's oil trade, they add.
In an example, a Chinese buyer pays a commercial company in Yuan to an offshore account. Then, the intermediary “converts this into cryptography and transfers it to another account and from there, is sent to a third account in Russia and becomes rubles,” two sources explained. For a Russian oil merchant, “cryptographic transactions are in tens of millions of dollars per month,” said a source familiar with the merchant's operations.
crypto.news previously reported that the Russian Bank proposed a regulated framework for cryptocurrency investments under an experimental legal regime of three years. The plan would limit participation to “particularly qualified” investors with more than 100 million rubles in values and deposits or an annual income of more than 50 million rubles.
In May 2024, Bloomberg also reported that the two largest unauthorized metal producers in Russia began using the Tether USDT Stablecoin for cross -border transactions with Chinese customers and suppliers.
The change occurred after the United States Treasury warned that it would impuse sanctions secondary to financial institutions that help the evasion of sanctions. The executives of the unidentified companies explained that some transactions are processed through Hong Kong, although the total commercial volume is not clear.
