Crypto Reportedly Fueling Russia’s $192B Oil Trade With China and India, Insiders Reveal

Key Takeaways

• Russia is increasingly using Bitcoin, Ether, and stablecoins like Tether in its oil trade with China and India.
• Finance Minister Anton Siluanov previously confirmed that Russia uses Bitcoin in international trade to bypass U.S. and allied sanctions.
• Donald Trump’s pro-crypto stance could create an unexpected area of alignment between Russia and the U.S.

As Western sanctions restrict its access to global financial systems, Russia has turned to cryptocurrency to facilitate oil sales to China and India, Reuters reported, citing four sources with direct knowledge of the matter.

The move, part of Moscow’s ongoing efforts to reduce reliance on the U.S. dollar and traditional banking channels, is fueling speculation that digital assets could play a larger role in global trade.

While Russia has publicly supported the use of crypto in international transactions—passing legislation in 2024 allowing digital currency payments—the extent of its involvement in oil trade had not been disclosed until now.

How Russian Oil Firms Use Crypto

According to Reuters , some Russian oil companies have started using Bitcoin (BTC), Ether (ETH), and stablecoins like Tether (USDT) to convert Chinese yuan and Indian rupees into rubles.

Though this remains a small part of Russia’s $192 billion oil trade, sources described it as a growing trend.

Two of the sources outlined a typical transaction: A Chinese buyer pays a middleman in yuan, who then converts the funds into cryptocurrency.

The assets are moved through multiple accounts before being exchanged for rubles in Russia. One Russian oil trader is reportedly processing crypto transactions with China worth tens of millions of dollars each month.

A researcher tracking crypto’s role in sanctions evasion told Reuters that while Tether (USDT) is a commonly used option, Russia employs various digital asset mechanisms to complete transactions.

Russia’s Finance Minister Confirmed Crypto Use

As CCN reported on December 2024, Russian Finance Minister Anton Siluanov confirmed that companies in the country have been using Bitcoin for international trade to bypass sanctions.

Following legislative changes in 2024, Russian businesses increasingly turned to digital assets to navigate restrictions imposed by the U.S. and its allies.

With sanctions limiting access to traditional banking networks, crypto has emerged as a viable alternative to the U.S. dollar and SWIFT.

Siluanov’s remarks reinforce speculation that Russia is deepening its reliance on digital currencies to counter economic restrictions.

Other Sanctioned Nations Also Rely on Crypto

Russia is not the only country leveraging digital assets to trade oil or sidestep Western sanctions.

Iran and Venezuela have already turned to cryptocurrencies to facilitate transactions while reducing dependence on the U.S. dollar, the dominant currency for global oil markets.

Venezuela, in particular, increased its use of digital currencies after the U.S. reimposed sanctions.

Russia has since expanded its own involvement in crypto-based transactions.

A Kremlin adviser and analysts in the U.K. told Reuters that while digital assets play a role, they are just one of several strategies Russia is using to circumvent financial restrictions.

However, Russia’s oil trade still primarily relies on traditional currencies, with alternative payment methods like the UAE dirham also in use.

Crypto May Be an Unlikely Diplomatic Link Between Russia and U.S.

Moscow’s use of crypto in its oil trade is not just a sanctions workaround—it could also serve as an unexpected point of alignment with the U.S.

President Donald Trump has signaled a desire to improve relations with Russia while seeking to resolve the war in Ukraine.

Though his administration is still reviewing its stance on existing sanctions, Trump said on Mar. 7 that he is strongly considering imposing additional measures on Moscow.

However, Trump’s pro-crypto stance and Russia’s growing interest in digital assets could create an unusual common ground between the two nations.

Regardless of future policy shifts, cryptocurrency is likely to remain a key tool in the Russian oil trade.

One of Reuters’ sources noted that even if traditional banking options become available again, crypto’s efficiency and speed make it an attractive option for transactions.