Russia Uses Bitcoin (BTC) and USDT for Oil Trade With China and India

YEREVAN (CoinChapter.com) — Russian oil companies are using Bitcoin (BTC) and Tether (USDT) to conduct oil trade with China and India, according to a Reuters report on March 14. The report cites four sources familiar with the transactions.

One Russian oil trader reportedly handles tens of millions of dollars in monthly transactions using cryptocurrencies. The source, who spoke under a non-disclosure agreement, confirmed that digital assets play a key role in international oil trade.

Russia’s finance minister stated in late 2024 that the country can use Bitcoin for foreign trade. However, the use of Bitcoin and USDT in oil transactions with China and India had not been previously reported.

How Russia’s Oil Trade With Bitcoin and USDT Works

The use of Bitcoin and USDT in Russia’s oil trade follows a structured process involving intermediaries and offshore accounts.

For example, a Chinese oil buyer pays a trading firm in yuan via an offshore account. The intermediary then converts the funds into Bitcoin or USDT before transferring them to another account. A second intermediary then sends the digital assets to a Russian account, where they are finally converted into rubles.

This process enables Russian oil firms to settle transactions without using SWIFT or the U.S. dollar. It allows for faster cross-border settlements while avoiding restrictions imposed by international sanctions.

Bitcoin and USDT Remain Key in Russia’s Oil Trade

One source told Reuters that Russia will likely continue using Bitcoin and USDT in oil trade, regardless of sanctions.

“It is a convenient tool and helps run operations faster,”

the source said.

The Bank of Russia recently proposed legalizing cryptocurrency investments for high-net-worth individuals with at least $1.1 million in securities and deposits. This aligns with Russia’s efforts to integrate Bitcoin and USDT into foreign trade.

China Maintains Restrictions on Bitcoin Use

While Russia expands its use of Bitcoin and USDT, China enforces strict regulations on cryptocurrency. Authorities banned most crypto transactions in 2021 and have maintained these restrictions.

Despite the ban, China remains one of the largest Bitcoin mining hubs. This contradiction has raised questions about the effectiveness of the country’s restrictions on digital assets.

Meanwhile, Hong Kong has positioned itself as a crypto-friendly jurisdiction, attracting global investors.

China’s Bitcoin Holdings Raise Questions

As the United States advances its strategic Bitcoin reserve initiative, some analysts believe China is accumulating Bitcoin as a financial asset.

According to Jan3, a Bitcoin technology company, China’s government holds at least 193,000 BTC. This suggests that despite regulatory restrictions, Bitcoin remains relevant in China’s financial landscape.