Russian Companies Use Bitcoin For International Payments

Recent reports revealed that Russian companies have begun using Bitcoin and other digital assets in international trade to bypass sanctions.

Recent reports indicate that Russian companies have begun utilizing Bitcoin and other digital assets in international trade as a means of circumventing sanctions. Additionally, the country's Finance Minister has disclosed the government's intention to expand the use of cryptocurrencies as an alternative mechanism for international payments.

According to a recent report by Reuters, Russia's Finance Minister, Anton Siluanov, has announced that companies have commenced using Bitcoin and other cryptocurrencies for international payments in an effort to bypass sanctions.

Speaking to the local news channel Russia-24, the minister revealed that the country began officially using these alternatives for foreign trade transactions following this year’s legislative changes.

“As part of the experimental regime, it is possible to use Bitcoin, which we had mined here in Russia,” Siluanov stated.

In July, Russian lawmakers passed a bill that permits businesses to use cryptocurrencies, including Bitcoin, in international trade. Under the new law, which became effective in September, the central bank is tasked with establishing an “experimental” infrastructure for crypto payments, with the first transactions anticipated to take place before year-end.

On Wednesday, Siluanov elaborated that these transactions “are already occurring,” underscoring that international payments in crypto represent the future. He added that the government maintains a belief “they should be expanded and developed further. I am confident this will happen next year.”

Russian companies, exchanges, and crypto entities can apply to the central bank to join the experimental regime. However, crypto payments within Russia itself continue to be prohibited.

The report highlights the significant delays that Russia has encountered in making international payments to its major trading partners, including China, India, Turkey, and the United Arab Emirates. These countries “are being extremely cautious with Russia-related transactions to avoid the attention of Western regulators.”

On Thursday, news outlet Ukrainska Pravda reported that Ukraine has vowed to impose sanctions on Russia for using Bitcoin in international trade.

"Are we at all surprised? No, we were, without exaggeration, the first to draw our partners' attention to such plans of the enemy back in the summer,” Vladyslav Vlasiuk, Advisor to the President of Ukraine and Commissioner for Sanctions Policy, stated.

“Appropriate sanctions and other solutions to block the possibility of using unwanted cryptocurrency payments are already being prepared.”

This year, the Russian government has implemented several legislative changes pertaining to cryptocurrencies. As reported by Bitcoinist, President Putin signed various laws that took effect on November 1. Among these measures was a law to legalize mining activities in the country.

Putin also approved a law to regulate crypto turnover, expanding the government's oversight of Bitcoin and crypto mining operations. The amendments aimed to strengthen the state's authority in regulating crypto activities.

Following these changes, the country also approved a six-year ban on mining activities in key regions and a seasonal prohibition in specific territories due to Russia's ongoing energy crisis.

According to the report, the measure includes a six-year ban on all crypto mining and mining pool activity in ten regions, including Dagestan, Ingushetia, and North Ossetia. Moreover, some territories of the Irkutsk region, Buryatia, and Zabaikalsky Krai will face a seasonal ban during consumption peaks, with mining activities prohibited starting January 1, 2025.

Despite the restrictions, over 150 local mining firms have reportedly applied for the license to operate legally in Russia, with more companies expected to register soon.