The Russian government considers bitcoin as a payment option for small business transactions, not for oil exports, the country’s finance ministry has indicated. Top officials stressed that the department does not consider cryptocurrency legal tender but may use it in barter transactions.
Ministry of Finance claims that crypto payments will not be used for Russian State Settlements
Authorities in Moscow view cryptocurrency payments as an alternative to smaller private contracts. This will not impact Russian oil delivery. The clarification was made by the head of the finance ministry’s Financial Policy Department, Ivan Chebeskov, who recently spoke with reporters on the matter.
According to the top-ranking official, cryptocurrency is being considered an asset and not a payment method. That means digital currencies can be used in barter transactions — when a buyer formally exchanges bitcoins, or other cryptocurrencies, for a product or service, he explained. Chebeskov, citing RTVI, elaborated on the following:
Our task is to find an alternative. This is not to suggest that Russia pays for all things with cryptocurrency. The issue is not one of state settlements, it’s about private business.
A Minfin representative said that because of the large volume of oil exports, it would be difficult to sell oil for bitcoins. And while not all of Russia’s partners would be able to transition to national currencies despite the increasing difficulties with U.S. dollar and euro payments, he believes crypto settlements are only possible under relatively small contracts and with friendly countries open to accepting coins.
Chebeskov’s comments come after an earlier statement by the head of the parliamentary Energy Committee, Pavel Zavalny, who mentioned bitcoin as a possible substitute for western currencies in Russian energy exports, those of natural gas in particular.
In the meantime, the Central Bank of Russia has relaxed its position on cryptocurrency payments when it comes to foreign trade relations. In May, a provision allowing Russian companies to make such transactions for import and export purposes was added to the new bill “On Digital Currency” drafted by the Ministry of Finance.
Recognizing cryptocurrency as property in Russia’s Civil Code and amending an article on barter exchanges in the legislation governing foreign economic activities of Russian entities are also necessary to fully open the door for this type of deal, the report details.
United States and allies tried to stop the Russian Federation using cryptocurrencies to bypass sanctions that were imposed by its military invasion of Ukraine. RTVI notes that Russian accounts have been blocked by some global cryptocurrency platforms.
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