Russian oil companies are reportedly utilizing cryptocurrencies like USDT, Bitcoin, and Ethereum to bypass Western sanctions. This method involves converting payments made in Chinese yuan and Indian rupees into rubles. According to Andrew Fierman from Chainalysis, cryptocurrencies are becoming essential for Russian entities facing sanctions due to limited access to traditional financial systems. While most of Russia’s oil trade still relies on fiat currencies, the use of cryptocurrencies is growing, with a notable increase in transactions involving the UAE dirham. Legal frameworks supporting cross-border crypto payments have also emerged, driven by Russian authorities aiming to leverage digital assets in international trade. However, the use of cryptocurrencies for sanctions evasion presents challenges, including the risk of law enforcement actions and regulatory scrutiny. For instance, Garantex, a Russian crypto exchange, was recently sanctioned by the EU due to its ties to sanctioned Russian banks. The complexity of adhering to evolving financial regulations suggests that while cryptocurrencies may continue to be utilized, evading sanctions will remain difficult, especially as more jurisdictions enforce strict anti-money laundering measures.

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