**Russia Uses Cryptocurrencies to Bypass Sanctions**
Russia has started using digital currencies like Bitcoin and Ethereum in oil transactions with China and India. This is to avoid Western sanctions, according to a Reuters report.
The use of cryptocurrencies is still small compared to Russia’s $192 billion annual oil trade. But it’s growing. Chinese and Indian buyers pay trading firms in yuan or rupees. The funds are then transferred to offshore accounts, converted into digital currencies, and withdrawn to another account before being exchanged for rubles in Russia.
**Why Russia Likes Cryptocurrencies**
Russia will likely continue using cryptocurrencies even if Western sanctions are lifted. This is because transactions with digital currencies are fast and flexible. Sources told Reuters that Russia will keep using them to buy and sell oil.
**China Cuts Russian Oil Purchases**
Meanwhile, China’s state-owned oil companies are reducing purchases of Russian crude. They’re worried about US sanctions. The Trump administration has stopped allowing Russian banks to access US payment systems for energy transactions.
This move will make it harder for Russia to sell oil and could lead to higher global energy prices.