Crypto

Russia’s Crypto Oil Trade: Bitcoin and Ethereum Used with BRICS to Dodge Sanctions

epicfailtr3 Posted on 5 hours ago 2 min read

Russia’s Crypto Oil Trade: Bitcoin and Ethereum Used with BRICS to Dodge Sanctions

On March 14, 2025, reports indicate that Russia has started using Bitcoin and Ethereum for oil trade with BRICS nations as a means to evade Western sanctions, marking a pivotal shift in global trade dynamics. This move leverages the decentralized nature of cryptocurrencies to bypass traditional financial systems, potentially redefining economic relationships amid ongoing geopolitical tensions.

Since the imposition of sanctions following the conflict in Ukraine, Russia has faced significant restrictions on its ability to use the US dollar or other Western currencies for international trade. These sanctions, aimed at limiting Russia’s economic activities, have pushed the country to explore alternative methods, including cryptocurrencies. The BRICS group, comprising Brazil, Russia, India, China, and South Africa, has been advocating for de-dollarization, seeking to reduce reliance on the US dollar in global trade. Using Bitcoin and Ethereum aligns with this goal, offering a decentralized alternative to traditional financial systems.

Historically, Russia has had a cautious approach to cryptocurrencies, banning their use as payment within the country but exploring their potential for cross-border transactions. In 2022, the Russian central bank proposed legalizing crypto for international trade, and recent developments suggest this strategy is being implemented, particularly for oil exports CoinDesk: Russia Explores Crypto for Cross-Border Trade.

Details of the Development

According to sources close to the matter, several Russian oil companies, including major producers like Rosneft, have begun accepting Bitcoin and Ethereum as payment for oil shipments to select BRICS countries. This initiative is seen as a pilot project to test the feasibility and efficiency of using cryptocurrencies in large-scale international trade. One reported transaction involved Rosneft selling a shipment of crude oil to China, a key BRICS member, and receiving payment in Bitcoin, facilitated through a secure blockchain platform to ensure transparency and security CryptoNews: Russia Uses Bitcoin for Oil Trade with China.

The use of Bitcoin and Ethereum is particularly appealing due to their high liquidity and global acceptance, making them suitable for large transactions like oil trade. However, the exact volume of these transactions and the full list of participating BRICS countries remain unclear, with reports suggesting ongoing negotiations with India and Brazil as well CoinTelegraph: Russia and BRICS Explore Crypto Oil Trade.

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