Bitcoin for barrels.In a bid to evade Western sanctions, Russia will begin to allow payments for its embargoed oil in Bitcoin and other forms of digital currency.That’s because Russian lawmakers passed a bill on Tuesday that will allow businesses to use crypto currencies in international trade, as part of efforts to evade sanctions imposed after Russia's invasion of Ukraine in February 2022..Oil is typically transacted in American dollars. Despite Russia's efforts to switch to the currencies of its trade partners and develop an alternative payment system within the BRICS group of emerging economies, many payments are still conducted in dollars and Euros and go through the international SWIFT system.This in turn exposes banks in countries trading with Russia to the risk of secondary sanctions, forcing them to tighten compliance procedures. This in turn has reduced intentional trade flows as much as 8% in the second quarter of this year..The new law is expected to go into force in September and the first crypto transactions will take place before the end of the year.Russia has faced delays and sanctions selling its shadow barrels with major trading partners such as China and India. The law is part of a package that also includes regulations on the mining of cryptocurrencies and the circulation of other digital assets. The new law will not lift an existing ban on cryptocurrency payments inside Russia.
Bitcoin for barrels.In a bid to evade Western sanctions, Russia will begin to allow payments for its embargoed oil in Bitcoin and other forms of digital currency.That’s because Russian lawmakers passed a bill on Tuesday that will allow businesses to use crypto currencies in international trade, as part of efforts to evade sanctions imposed after Russia's invasion of Ukraine in February 2022..Oil is typically transacted in American dollars. Despite Russia's efforts to switch to the currencies of its trade partners and develop an alternative payment system within the BRICS group of emerging economies, many payments are still conducted in dollars and Euros and go through the international SWIFT system.This in turn exposes banks in countries trading with Russia to the risk of secondary sanctions, forcing them to tighten compliance procedures. This in turn has reduced intentional trade flows as much as 8% in the second quarter of this year..The new law is expected to go into force in September and the first crypto transactions will take place before the end of the year.Russia has faced delays and sanctions selling its shadow barrels with major trading partners such as China and India. The law is part of a package that also includes regulations on the mining of cryptocurrencies and the circulation of other digital assets. The new law will not lift an existing ban on cryptocurrency payments inside Russia.
