Daily SumUp

Russia is using cryptocurrencies in its oil trade with China and India to dodge Western sanctions, Reuters reported Friday, citing four sources with direct knowledge of the matter.

Russia passed crypto mining legislation in August 2024, ending years of regulatory limbo. The country has reportedly tested cross-border crypto payments as it seeks an alternative to the U.S. dollar to settle international trade deals.

After initially rejecting the idea of cryptocurrencies, the famously conservative Russian Central Bank eventually softened its stance on the potential use of cryptocurrency as a recognized means of payment.

This month, the Central Bank launched an experimental legal framework that would allow “highly qualified” investors to trade cryptocurrencies but stopped short of recognizing cryptocurrency as legal tender. 

Reuters’ report is the first to suggest that Russia is using crypto for oil trade.