Amid tightening Western sanctions, Russia is exploring the use of cryptocurrencies such as Bitcoin, Ethereum, and Tether to trade oil with China and India.
Can Bitcoin Replace the USD in Oil Transactions?
According to some sources, Russia has started converting Chinese yuan and Indian rupees into Bitcoin, ETH, and USDT before exchanging them for Russian rubles.
Although crypto transactions account for only a small fraction of Russia's $192 billion oil revenue in 2024, this move is seen as a strategic step to reduce dependence on the U.S. dollar.
Iran and Venezuela have previously used cryptocurrencies to bypass U.S. sanctions and sustain their energy exports. Now, Russia appears to be adopting a similar model.
Russia is now using $BTC & other Cryptocurrencies in its oil trade with China and India according to Reuters.
— Karan Singh Arora (@thisisksa) March 14, 2025
Here’s how it works-
An Indian buyer of Russian oil can pay INR into an offshore account of a trading company (who acts as a middleman).
The trading company then… pic.twitter.com/Gep1DLVau3
How Russia Conducts Oil Transactions Using Crypto
💰 An Indian customer buying oil from Russia makes a payment to an
intermediary company.
💰 The company converts the funds into cryptocurrency and transfers them to
a Russian account.
💰 In Russia, the cryptocurrency is exchanged for rubles for domestic
use.
👉 This method allows Russia greater flexibility in international trade, even if sanctions are lifted.
So far, Russian government agencies have not confirmed this information. However, delays in oil payments last year due to sanctions were a reality.
Meanwhile, the U.S. is considering tougher sanctions on Russia. On March 7, President Donald Trump stated he might increase economic pressure on Moscow.
Cryptocurrency is becoming a key tool for Russia to optimize oil trade, even in a post-sanctions scenario. However, besides crypto, Russia is also leveraging other alternatives, such as the UAE dirham, to maintain cash flow.