Russia Using Crypto for Oil Trades with China and India: Report

Highlights:

• Russian companies are using cryptocurrencies including Bitcoin, and Ethereum to facilitate oil trade.
• Russia’s oil trade relies on middlemen managing crypto payments to avoid using the dollar.
• Despite restrictions, China remains a top Bitcoin miner, raising questions about its crypto ban.

Russia is now using cryptocurrencies to facilitate its oil trade with China and India. This helps the country avoid Western sanctions, according to sources who spoke to Reuters on March 14. Last summer, Russia’s finance minister said the country could use Bitcoin for international trade. However, its use of crypto for oil sales to China and India was not known before.

Sources reveal that certain Russian oil companies are utilizing Bitcoin (BTC), Ethereum (ETH), and stablecoins like Tether (USDT) to streamline currency exchanges between the Chinese yuan, Indian rupees, and Russian rubles. Crypto transactions make up a small part of Russia’s $192 billion oil industry, but they are becoming more popular to avoid using the U.S. dollar, which controls global energy markets. 

Trump Administration has let the General License for Russia to sell oil to western countries expire. That means no European Country or ally who works with the United States can buy Russian oil without the threat of sanctions. #Oil #Russia pic.twitter.com/fe5mv9aA4d

— Edward Lawrence (@EdwardLawrence) March 13, 2025

According to a source who requested anonymity due to a non-disclosure agreement, a Russian oil trader is said to make deals worth tens of millions of dollars each month using digital currencies. 

Russia’s Oil Trade Uses Crypto with Middlemen

Reuters reports that Russia’s foreign oil trade in crypto involves middlemen who manage offshore accounts. They help handle transactions in the buyer’s local currency. For example, a Chinese buyer of Russian oil pays in yuan to a trading company acting as a middleman. The middleman then changes the payment into crypto. The crypto is sent to another account, which transfers it to a third account in Russia. Finally, the money is converted into rubles, sources say.

Digital payments are fast, private, and efficient, making them a useful way to bypass financial restrictions.

Russia Embraces Bitcoin While China Maintains Restrictions

Russia is becoming more open to using Bitcoin for trade, while China remains cautious and restrictive about cryptocurrency. Since banning most crypto transactions in 2021, China has stayed strict on crypto, while Hong Kong has become a global crypto hub. Even with restrictions, China is still a top country for Bitcoin mining, causing debate about its crypto ban.

As the U.S. builds its Bitcoin reserves, some experts think China won’t ignore Bitcoin’s increasing importance in global finance. Data from Bitcoin tech company Jan3 suggests that the Chinese government may own at least 193,000 BTC.

Amazing breakdown of which countries hold the most bitcoin by @JAN3com . The US has got a lot of work to do! pic.twitter.com/9f6nwzkptQ

— KaMeek Lucas Taitt (@KaMeek) March 10, 2025

Former U.S. President Trump wants better ties with Russia to help end the Ukraine war, but the future of sanctions is unclear. Reuters says the White House may ease sanctions, but on March 7, Trump said he might add more financial restrictions on Russia. Even if policies change and sanctions end, sources believe Russia will keep using crypto for oil trade. Digital payments are fast, private, and efficient, making them a useful way to bypass financial restrictions.