Russian Finance Ministry Rules Out Sale of Oil for Bitcoin – According to the Russian finance ministry, bitcoin is considered a payment alternative for small company transactions but not for oil exports. The department indicates that cryptocurrencies can be used in barter dealings but not as legal cash, according to a top official.
In terms of international transactions, the authorities in Moscow consider cryptocurrency payments as a viable alternative for small private business contracts, but this will have no impact on Russian oil delivery. Ivan Chebeskov, the head of the finance ministry’s Financial Policy Department, made the clarification in a recent interview with reporters.
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The ministry intends to use cryptocurrencies as an asset rather than a source of payment, according to the high-ranking official. As a result, he continued, digital currencies can be utilized in barter transactions, which are when a buyer formally exchanges bitcoins or other cryptocurrencies for a commodity or service.
Chebeskov elaborated, as cited by RTVI:
“The goal is to create a viable alternative, not to imply that Russia is now paying for everything with cryptocurrency. This is not about government settlements, but exclusively about private business.”
Because of the enormous numbers of these exports, the Minfin representative pointed out that oil would be difficult to sell for bitcoins. Despite the rising issues with U.S. dollar and euro payments, not all of Russia’s partners will be able to convert to national currencies, he believes crypto settlements are only achievable with modest contracts and friendly countries willing to accept coins.
Chebeskov’s remarks follow those of Pavel Zavalny, the leader of the legislative Energy Committee, who suggested bitcoin as a possible substitute for western currencies in Russian energy exports, particularly natural gas exports.
Meanwhile, in the framework of international economic ties, Russia’s Central Bank has relaxed its stance on cryptocurrency payments. In May, a clause was added to the new bill “On Digital Currency” proposed by the Ministry of Finance that allows Russian enterprises to conduct such transactions for import and export purposes.
To fully open the door for this type of agreement, Russia’s Civil Code must recognize cryptocurrencies as property, and legislation governing international economic activities of Russian firms must revise an article on barter exchanges, according to the report.
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The US and its allies have been attempting to prevent Russia from using cryptocurrencies to circumvent sanctions imposed as a result of its ongoing military invasion of Ukraine.
