Russian Companies Are Using Bitcoin to Circumvent Western Sanctions, Finance Minister Confirms

Russian companies are circumventing Western sanctions by using Bitcoin and other cryptocurrencies to settle international trade, the country's Finance Minister, Anton Siluanov, confirmed yesterday (Wednesday).

Russia is using Bitcoin and other cryptocurrencies to settle international trade, Finance Minister Anton Siluanov confirmed Wednesday.

"As part of the experimental regime, it is possible to use bitcoins that we have mined here in Russia [in foreign trade transactions]," Siluanov told the Russia 24 television channel (translated from Russian).

"Such transactions are already occurring," the minister added. "We believe they should be expanded and developed further. I am confident this will happen next year."

Russia has been heavily sanctioned by Western countries following its invasion of Ukraine. Among other measures, Western nations have banned multiple Russian banks from accessing SWIFT, the messaging network banks use to settle international transactions.

While the West has largely stopped trading with Russia, the country continues to engage with China, India, Turkey and some other international trading partners. However, payments for international trade have become more complicated due to the ongoing Western sanctions. Both Russia and its trade partners are also experimenting with using their own fiat currencies to settle trade payments.

The Russian finance minister's confirmation follows remarks by President Vladimir Putin, who recently highlighted Bitcoin's resilience, stating that no government can effectively ban it. A Russian lawmaker has also recently proposed adding Bitcoin to the country’s reserves to mitigate geopolitical risks.

New Rules on Bitcoin Mining

In an interesting twist, Russian authorities have also approved a list of regions where cryptocurrency mining will be banned starting Jan. 1, 2025. The ban will last for six years, expiring on March 15, 2031. These measures align with cryptocurrency mining laws signed by President Putin in August and October 2024, which aim to manage energy consumption.

Meanwhile, the U.S. is widely expected to shift its policies in favor of cryptocurrencies. U.S. President-elect Donald Trump has openly endorsed Bitcoin and even referred to himself as "the first Bitcoin President." His nominations for key positions in U.S. agencies and regulatory bodies also reflect a pro-crypto sentiment.

Against this backdrop, demand for Bitcoin is rising. The cryptocurrency briefly surpassed the $100,000 milestone following the U.S. elections and is now trading above $95,000 after some price corrections.