Why Is Bitcoin Going Up? Russia Uses Crypto in Oil Trade with China and India

Bitcoins

2025-03-14T16:32:32.092+02:00

Friday, 14/03/2025 | 14:32 GMT by
Tareq Sikder

Russian oil firms use crypto intermediaries to convert yuan and rupees into rubles, moving $10M monthly.
Sanctions risk banking channels, pushing Russia to use crypto for its $192B oil trade.

bitcoins Russian President Vladimir Putin at BRICS Kazan 2024 Summit — Russian President Vladimir Putin at BRICS Kazan 2024 Summit

Russia is using cryptocurrencies in a small but growing part
of its oil trade with China and India, Reuters reported today (Friday). The
move helps Russian companies bypass Western sanctions. The report cited four
unnamed sources familiar with the matter.

Meanwhile, BTCUSD H1 chart shows the price gradually rising
after finding support at a key level. Additionally, the cryptocurrency is
trading above a bearish trend line’s support, potentially attracting more
intraday buyers and adding bullish momentum.

Russian Oil Firms Leverage Crypto Transactions

Russian oil firms are using bitcoin and ether through
intermediaries to convert yuan and rupees into rubles, the sources said.
Stablecoins are also being used, though issuers like Tether can freeze funds if
required by regulators.

— Ufo Calls ???? (@UfoCalls) March 14, 2025

One source said a Russian oil trader’s crypto transactions
with China are worth tens of millions of dollars per month. The use of
cryptocurrencies in Russia’s oil trade reportedly began in December after
legislative changes allowed their use in international payments. Finance
Minister Anton Siluanov said the shift was a response to sanctions.

Crypto Infrastructure Helps Russia Evade Sanctions

Western restrictions imposed after Russia’s invasion of
Ukraine have disrupted trade with key partners. Chinese and Indian banks have
become cautious with Russian-linked transactions to avoid scrutiny. In
September, blockchain analytics firm Chainalysis reported that Russia’s central
bank was leading crypto infrastructure efforts to evade sanctions. However,
this is the first time cryptocurrency use in Russia’s $192 billion oil trade
has been detailed.

Russian
official Anton Gorelkin said sanctions would not fully block Russia from
using cryptocurrencies. His comments followed new EU sanctions on Russian
crypto exchange Garantex, which has been under US sanctions since 2022.

BTCUSD, H1 Chart, Source: TradingView

BTCUSD Finds Support at 80K Level

The BTCUSD H1 chart reveals that the price has established
support at a crucial level of 80K, which holds significant importance. After
forming a bullish reversal pattern, the price has begun moving upwards
gradually. Although the price has managed to breach a bearish trendline, it has
yet to generate a strong bullish momentum.

Despite this, as long as the price stays above the
trendline, it could encourage more buyers to enter the market, potentially
pushing the price toward the next resistance level, which is expected to be
around 90K.

Trump Eyes Russia Ties, Sanctions Stay

Meanwhile, US President Donald Trump has expressed interest
in improving ties with Russia and ending the Ukraine war, but sanctions remain
in place. The sources said crypto
will likely continue to play a role in Russia’s oil trade because it speeds
up transactions.

A Kremlin adviser said cryptocurrencies are just one of
several methods Russia is using to navigate payment challenges. Other
sanctioned nations, including Iran and Venezuela, have also turned to digital
assets to sustain trade while avoiding reliance on the US dollar.

Russian Oil Firms Leverage Crypto Transactions