Russia's Oil Trade Revolution Powered by Crypto Assets

Since President Donald Trump Donald Trump Donald Trump is an American former president politician, businessman, and media personality, who served as the 40th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election

President Donald Trump Donald Trump Donald Trump is an American former president, politician, businessman, and media personality, who served as the 45th president of the U.S. between 2017 to 2021. Trump earned a Bachelor of science in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton while losing the popular vote. As president, Trump ordered a travel ban on citizens from several Muslim-majority countries, diverted military funding toward building a wall on the U.S.–Mexico border, and implemented a family separation policy. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election took the oath of office earlier this year, the administration has focused on the efforts to reset the bilateral relations with Russia. Moreover, the Kremlin has been pressuring the war in Ukraine in a bid to force the Western nations to lift their sanctions.

However, Russia has flocked towards the members of the BRICS nation – which is being led by China, and India – to incrementally boost its international trade. The aim to dethrone the U.S. dollar from the global reserve currency has kept the BRICS movement pertinent.

Russia’s Oil Trade Revolution Powered by Crypto Assets

According to a report by Reuters, Russia is using crypto assets in its oil trade with China and India to circumvent the Western sanctions. According to three direct sources with knowledge of the matter, some Russian oil companies are using Bitcoin (BTC), Ethereum (ETH), and stablecoins to facilitate the seamless international forex trades of the Chinese Yuan, Indian Rupees, and Russian Roubles.

The recent development follows the move by the U.S. DoJ to seize the Russian Garantex exchange, for allegedly enabling money laundering activities and siphoning funds in violation of sanctions. Earlier this week, police in the Indian state of Kerala arrested Aleksej Besciokov for his involvement with the Garantex exchange and will soon face the charges in the United States.

Market Implication

The use of crypto assets to facilitate the Russian oil trade business will have a profound effect on their market outlook. More countries that have been sanctioned by the United States and Western countries will follow in the same direction.

Furthermore, cryptocurrencies offer a seamless transfer of value 24/7 365 days a year compared to the rigid traditional banking sector. Consequently, the rising demand for Bitcoin and Ethereum will fuel the underlying macro-bullish outlook. Already, the United States has signaled the adoption of Bitcoin, Ethereum, and other crypto assets in its strategic crypto reserve.