Russia has turned to cryptocurrencies to facilitate oil trade with China and India, notably to circumvent Western sanctions impacting its significant $192 billion oil trade. According to Reuters, Russians are utilizing Bitcoin, Ether, and stablecoins like USDT to convert payments from Chinese yuan and Indian rupees into roubles.

The rise of cryptocurrency use for these transactions signifies a small yet expanding share of Russia’s overall oil trade. Despite this trend, traditional currencies such as the UAE dirham still prevail as primary payment methods.

Russia’s exploration into cryptocurrency extends as far back as the Bank of Russia’s recent proposals aimed at establishing a three-year experimental legal framework to allow a selected group of investors to trade cryptocurrencies.

This pivot towards alternative payment methods can be seen as Russia’s attempt to continue trading oil internationally while minimizing reliance on the US dollar. With a history of using payment systems to navigate sanctions, Russia’s strategies include the adoption of cryptocurrencies.

Even if sanctions are lifted, the use of crypto in oil trades is likely to persist, viewed as a flexible and convenient option. The country’s central bank is even aiming to promote a ruble-backed digital currency, enhancing its toolkit for international trade.