Russian Finance Ministry has ruled out the sale of oil in exchange for bitcoin
21-Jun-2022
By: Somesh Gaur
Russian Finance Ministry has ruled out the sale of oil in exchange for bitcoin
According to the Russian finance ministry, bitcoin is considered a payment alternative for small business 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 explanation in a recent interview with reporters.
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 may be utilized in barter transactions, which are when a buyer formally swaps bitcoins or other cryptocurrencies for a commodity or service. Chebeskov was reported by a local news channel as saying: "The aim is to create an option, not to suggest that Russia is suddenly paying for everything with cryptocurrency. This is not about government settlements, but exclusively about private enterprise.”
Because of the enormous numbers of these exports, the Minfin official 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 take coins.
Chebeskov’s comments come after an earlier statement by the head of the parliamentary Energy Committee, Pavel Zavalny, who suggested bitcoin as a viable alternative 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 businesses to conduct such transactions for import and export purposes.
To completely open the door for this sort of agreement, Russia's Civil Code must recognize cryptocurrencies as property, and legislation controlling the international economic operations of Russian firms must revise an item on barter exchanges, according to the report.
The US and its allies have been attempting to prevent Russia from using cryptocurrencies to evade sanctions imposed as a result of its continuing military invasion of Ukraine. According to local news outlets, some worldwide crypto sites have already suspended Russian accounts.
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