Russia is increasingly using cryptocurrencies like Bitcoin, Ether, and Tether (USDT) to facilitate oil sales to China and India, circumventing Western sanctions, according to sources familiar with the transactions. While traditional currencies still dominate Russia’s $192 billion annual oil trade, crypto has emerged as a critical workaround for converting Chinese yuan and Indian rupees into rubles, enabling smoother cross-border deals.
Sanctioned Russian oil firms are leveraging crypto intermediaries to avoid dollar-based transactions. For example, Chinese buyers pay middlemen in yuan, which is converted to crypto and transferred to Russian accounts before being cashed into rubles. One trader’s monthly crypto transactions reportedly reach “tens of millions of dollars.” This mirrors tactics used by Iran and Venezuela to sidestep U.S. sanctions.
Despite President Donald Trump’s mixed signals on sanctions relief, analysts say crypto’s speed and anonymity make it a durable tool for Russia, even if restrictions ease. The UAE dirham and other methods remain in play, but Russia’s 2023 legalization of crypto for international trade underscores its strategic shift.
Sanctioned platforms like Garantex and Tether’s recent wallet freezes highlight risks, but Russian entities continue adapting. “Crypto is one of many solutions,” said a Kremlin advisor, as Moscow navigates payment bottlenecks caused by sanctions.