In 2025, Russia’s oil reserves ranked sixth most significant globally, and the country produced 11.1 million barrels per day, approximately 4.05 billion barrels in a year. Russia was one of the foremost oil producers who, instead of succumbing to Western sanctions for trading, utilized cryptocurrency to trade oil with China and India.
India and China are among the most significant oil consumers that are dependent on Russian crude oil. Russia is expected to increase its production further, as India consumes 221.77 million metric tons annually, and China uses 14 million barrels daily. Due to the sanctions, Russian oil companies quickly pay using Bitcoin, Ethereum, and Tether.
By switching to cryptocurrency transactions, Russia can seamlessly export oil to India and China without bank restrictions. Here’s how crypto is playing a role in these trades.
Russia Turns to Cryptocurrency for Oil Trade with India & China! #Bitcoin #Ethereum #Tether
As reported on 14-03-25 by Crypto Market News, Russia is using more cryptocurrencies to conduct oil trades with both India and China in an attempt to circumvent Western economic sanctions.
Due to the economic sanctions imposed by the West, Russian oil companies have started using cryptocurrency for international transactions. There are claims that several firms are utilizing Bitcoin, Ethereum, and Solana to change Indian Rupees (INR) and Chinese Yuan (CNY) into Russian rubles.
Crypto Usage in Russian Oil Trade:
- Bitcoin (BTC): 0.42%
- Ethereum (ETH): 1.49%
- Tether (USDT): 0.01%
Example Scenario:
One Russian oil company has a deal with an Indian refinery and supplies them crude oil at a selling price of ₹500 crore(INR).
Because of the American sanctions, normal banking payments are not possible.
- Payment is done in Ethereum (ETH) rather than through USD or SWIFT payments.
- The Indian refinery purchases Ethereum worth ₹500 crore and sends it to the Russian oil company’s crypto wallet.
- The Russian company then uses decentralized exchanges or peer-to-peer (P2P) trading to change Ethereum into Russian rubles (RUB).
- A similar approach might be taken by Chinese companies buying oil from Russia where Bitcoin (BTC) or Tether (USDT) are used to pay.
These techniques make it possible for the Russian oil companies to circumvent the Western financial limitations while guaranteeing easy trading with China and India during take advantage of the decentralized nature of cryptocurrency.
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