Russia Uses Bitcoin & USDT for Oil Trade With China & India

Russian companies are increasingly turning to Bitcoin (BTC) and Tether (USDT) to facilitate trade with China and India, according to a March 14 Reuters report.

The report, citing four sources with direct knowledge, revealed that Russian oil firms are conducting large-scale international transactions using crypto as a workaround to avoid sanctions and banking restrictions.

One Russian oil trader reportedly processes tens of millions of dollars in crypto transactions each month, a source disclosed under anonymity due to non-disclosure agreements (NDAs).

How Russia Uses Crypto in Oil Trade

Russia’s crypto-powered foreign trade involves a multi-step process using intermediaries:

🔹 Chinese buyers pay in yuan to an offshore account controlled by a middleman
🔹 The middleman converts the yuan into Bitcoin or USDT
🔹 Crypto is then transferred to another offshore account before reaching Russia
🔹 The final recipient converts it to Russian rubles for domestic use

This method allows Russia to bypass traditional banking channels, which have been heavily restricted due to Western sanctions.

Crypto Adoption Grows Despite Sanctions

According to a Reuters source, Russia will continue using crypto for oil trade—regardless of sanctions or even if restrictions on the U.S. dollar are lifted.

“It is a convenient tool and helps run operations faster,” the source explained.

This comes as the Bank of Russia recently proposed legalizing crypto investments for high-net-worth individuals, marking a significant shift in policy.

China’s Cautious Crypto Stance vs. Russia’s Growing Adoption

While Russia embraces Bitcoin and crypto in foreign trade, mainland China maintains strict restrictions.

🔹 China banned crypto transactions in 2021 but remains a global leader in Bitcoin mining
🔹 Hong Kong, however, has emerged as a crypto-friendly hub, attracting digital asset firms
🔹 Some analysts believe China may reconsider its stance as global Bitcoin adoption rises

Meanwhile, as the U.S. moves forward with its Strategic Bitcoin Reserve initiative, industry observers suggest that China may not ignore Bitcoin’s growing role in global finance.

According to Bitcoin technology firm Jan3, the Chinese government may already hold at least 193,000 BTC, further fueling speculation on its long-term crypto strategy.