March 17, 2025
By Anjali Kochhar
Western sanctions have significantly restricted Russia’s access to global financial systems, pushing the country to explore alternative payment methods for its oil exports. According to a Reuters report, Moscow is increasingly using cryptocurrency to facilitate transactions with China and India, its two largest buyers.
While Russia legalised digital asset payments in 2024, the extent of their role in oil sales has remained undisclosed until now. Sources familiar with the matter revealed that some Russian oil companies are processing payments through Bitcoin (BTC), Ethereum (ETH), and stablecoins like Tether (USDT) to convert Chinese yuan and Indian rupees into rubles.
This practice remains a small part of Russia’s $192 billion oil trade, but insiders suggest it is expanding. In a typical transaction, a Chinese buyer pays a middleman in yuan, who then exchanges the funds for cryptocurrency. The digital assets move through multiple accounts before being converted into rubles within Russia. One oil trader is reportedly handling crypto transactions worth tens of millions of dollars every month.
In December 2024, Russian Finance Minister Anton Siluanov acknowledged that businesses in the country were actively using Bitcoin for international trade. Legislative changes last year enabled Russian companies to explore digital currencies as an alternative to traditional banking networks, which remain under heavy Western restrictions.
With limited access to SWIFT and the U.S. dollar, crypto is proving to be a viable solution. Analysts suggest Russia is strengthening its reliance on digital assets to counter financial isolation, though its oil trade still largely depends on conventional currencies like the UAE dirham.
Russia is not alone in leveraging digital assets to bypass economic restrictions. Countries like Iran and Venezuela have already integrated cryptocurrencies into their oil trade to reduce dependency on the U.S. dollar. Venezuela, in particular, has ramped up crypto transactions following renewed sanctions from Washington.
While digital currencies offer an alternative financial route, they are just one of several methods Russia employs to navigate sanctions. Analysts believe Moscow will continue diversifying its payment strategies as geopolitical tensions persist.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
