Russia to Accept Bitcoin for Oil and Gas Payment

Russia to Accept Bitcoin for Oil

The chairman of the Russian State Duma Energy Committee has stated that the country will accept Bitcoin for energy exports from countries such as China and Turkey.

Important facts about Russia:

  • Russia’s energy and oil production has so far managed to keep sanctions at bay.
  • “Hostile countries”, according to Putin, must pay in rubles.
  • Putin Zavalny believes that Turkey and China will be able to benefit from Bitcoin.

“How can you deal with a situation like Maria’s, which has triggered international sanctions because the whole world is furious with you since you invaded Ukraine?

Bitcoin, apparently.

This week, Pavel Zavalny, the chairman of the State Duma Committee on Energy, stated that Russia will accept Bitcoin as payment for energy exports in the future.

According to him, the West must pay for oil in rubles or gold, while friendly or neutral states, such as China and Turkey, can pay in rubles or their own national currencies. “They can also exchange Bitcoins for other currencies.”

Sanctions imposed by the United States, the European Union and other countries have had a significant impact on the Russian economy. According to The Washington Post, the ruble lost half its value against the dollar as a result of the invasion but has already recovered to about 30% of its previous value.

Oil and gas, on the other hand, have rescued the country. Russia ships about 10% of the world’s oil and 40% of the natural gas consumed in Europe each year. While the United States and the United Kingdom have expanded their business internationally, other countries are hesitant to follow suit. President Vladimir Putin this week called for “unfriendly countries” to pay in rubles to help support the national currency.

This has been altered by Zavalny’s statement, though it is unclear whether he is referring to the entire sanctions alliance or just China and Turkey.

However, it is worth watching out for. The instability in Ukraine “will lead governments to reassess their dependence on currency” and examine digital alternatives, according to BlackRock CEO Larry Fink.

Bitcoin has been investigated for its alleged ability to help Russia escape sanctions and other economic ramifications of its military activities. In mid-March, Chainalysis co-founder Jonathan Levin stated: “We have not seen any evidence that Russia or Putin are using cryptocurrencies to avoid sanctions.” The combination of Bitcoin’s huge digital paper trail (which can be seen on any public block explorer) and its illiquidity make moving billions of dollars a difficult proposition.

Nothing will stop Russia’s gas producers from receiving payments in Bitcoin as long as the West is unwilling to commit to meeting the country’s energy demands.