Russia and Iran Turn to Crypto to Dodge Sanctions in Oil Trade

As Western sanctions tighten, Russia and Iran are finding creative ways to keep their oil-driven economies afloat using crypto. Russia, with its $192 billion annual oil trade, and Iran, once a major oil exporter, are leveraging digital currencies like Bitcoin to bypass financial restrictions, reshaping global trade under pressure.

Russia is increasingly tapping crypto like Bitcoin, Ethereum, and Tether (USDT) to power its oil trade with China and India, sidestepping Western sanctions, according to Reuters sources familiar with the matter. This shift, though still a small slice of Russia’s $192 billion annual oil market, is gaining traction as a creative workaround to financial restrictions imposed after its 2022 invasion of Ukraine.

The sources, who spoke anonymously due to the topic’s sensitive nature, explained that Russian oil firms use intermediaries to convert Chinese yuan and Indian rupees into crypto, then into rubles. One insider revealed that a single trader’s monthly crypto transactions with China reach tens of millions of dollars.

This follows Russia’s legalization of crypto for international payments in December 2024, a move championed by Finance Minister Anton Siluanov to counter payment delays with key partners like China and India. Wary of Western backlash, local banks in these nations have slowed Russia-linked dealings, pushing Moscow to innovate.

JUST IN: Russia is using cryptocurrencies like $BTC, $ETH, and USDT in its oil trade with India to bypass Western sanctions, converting rupees to rubles – Reuters. pic.twitter.com/kJ4zr0G1vH

— Whale Insider (@WhaleInsider) March 14, 2025

Meanwhile, Iran is using Bitcoin mining to turn its oil into money. With U.S. sanctions cutting its oil exports by 70% in a decade, Iran is fueling mining rigs with excess oil and gas. Elliptic’s 2021 analysis shows that this accounts for 4.5% of global Bitcoin mining,burning energy equivalent to10 million barrels of crude oil per year about4%of its2020exports.Thisgenerates nearly$1billioninBitcoi,nwhichIran’scentralbankcollectsfromlicensedminerstopayfor imports.It’ s aclever twist:Iranis “exporting”itasa digitalcurrencyinsteadofshippingoil.

Beyond Sanctions:RussiaandIranStartANewOilTradePlaybook

This isn’t just about evasion—crypto speeds up transactions,making it appealing even ifsanctions ease.U.S.PresidentDonald Trumphas hintedat thawing tieswithRussiaandendingtheUkraineconflict,but sanctions relief remains uncertain.Regardless,sourcessaycrypto’sefficiency couldcementitsroleinRussia’soilplaybook,mirroringtrendsinothersanctionedstateslikeIranandVenezuela ,wheredigitalcurrenciespropupeconomiescutofffromdoll ar-basedsystems.

Thestakesarehigh.Russia’soiltrade,a $192 billioncolossuspertheInternationalEnergyAgency(IEA)< p>< arel=”nofollow”target=”_ blank"class=”general-link”href=” https://www.chainalysis.com/blog/russias-cryptocurrency-legislated-sanctions-evasion/"target=_“_ _ blank“rel=_“noopener nofollow“>Chainalysisreported < strong >EXPLORE:

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