Russia pays China for military goods using cryptocurrency
Illustrative photo (Getty Images)
Russian authorities have begun to convert trade with China into cryptocurrency. The first group of importers to be allowed to pay for Chinese goods in digital currencies included electronics manufacturers and several banks, reports Vedomosti.
According to one of the sources, the authorities primarily selected companies that purchase dual-use goods from China that can be used for military purposes. These importers previously experienced the greatest difficulties with payments to banks in China and other countries.
Payments will be made in an experimental legal regime.
The amendments on cryptocurrency settlements for foreign trade contracts came into force on September 1. The amendments also allow exchange trading in cryptocurrencies under the supervision of the central bank.
Yuriy Brisov, a partner at Digital & Anologue Partners, says that attempts to use cryptocurrency to circumvent sanctions will be quickly detected, as all transactions in the blockchain are open for verification. This will quickly bring the Russian authorities' experiment to a fiasco.
Therefore, it should be strictly focused on activities that are not subject to sectoral sanctions and on working with countries that have not imposed restrictions on Russia, the expert said.
NATO Secretary General Jens Stoltenberg said that China had become a decisive factor in Russia's war against Ukraine. According to him, China is the country that provides materials for many of the weapons used by Russia.
Earlier, Bloomberg reported that Russian commodity companies trying to conduct financial transactions with their Chinese counterparts had started using cryptocurrency and barter.
