While Russia has previously promoted the use of cryptocurrencies in international transactions, their role in oil exports was not widely known. According to the International Energy Agency, the value of Russia’s oil exports in 2024 reached $192 billion, with cryptocurrencies accounting for a growing share of these transactions.

📏 How Does the Transaction Process Work?

The use of cryptocurrencies in oil trade follows this process:

• 🇨🇳 A Chinese buyer pays a middleman in yuan into an offshore account.
• 🤝 The middleman converts yuan into cryptocurrencies (USDT, BTC, or ETH).
• 📡 Cryptocurrencies are transferred to another account in Russia.
• 🌍 In Russia, they are exchanged for rubles and received by oil sellers.

🔒 Why Cryptocurrencies?

Russia is not the only country using cryptocurrencies to bypass sanctions. Similar methods have been employed by Iran and Venezuela, allowing them to reduce reliance on the US dollar 🇺🇸. Cryptocurrencies provide a fast and relatively anonymous way to conduct international transactions.

🛑 Are Sanctions Effective?

Despite sanctions, oil trade continues, and Russia has developed multiple methods to navigate restrictions. Cryptocurrencies are just one workaround—others include using the UAE dirham and local currency swaps.

🌟 What’s Next?

Experts predict that even if sanctions are lifted, cryptocurrencies will remain a part of Russia’s oil trade. They are fast, convenient, and independent of central banks. Does this mean the future of global trade will be even more intertwined with cryptocurrencies? ⚖️

📍 References:

• Read the Reuters article
• MGX Invests $2 Billion in Binance – A Game-Changer for Crypto! 💰