Russian Finance Ministry Rules Out the Sale of Oil for Bitcoin
The Russian
government considers bitcoin as a payment option for small business
transactions but not for oil exports, the country’s finance ministry has clarified. A top official has
explained that
cryptocurrencies may be used in barter deals but not as legal tender.
Crypto Payments are Not for Russian State Settlements
Authorities in Moscow look to use cryptocurrency as an alternative option for small private business contracts, but
this will not affect Russian oil deliveries. The clarification was made by the
head of the finance ministry’s Financial Policy Department, Ivan Chebeskov while speaking
to the media.
The ministry
proposes to employ cryptocurrency as an asset but not as a means of payment, the official said. Digital currencies can be used in barter transactions when a buyer formally exchanges bitcoins and other cryptocurrencies for a product or service, he explained.
Quoted by RTVI, Chebeskov elaborated:
"The
task is to provide an alternative, and not to say that Russia is now paying for
everything with crypto. This is not about state settlements but private
businesses only."
The Minfin
representative pointed out that oil cannot be sold for bitcoins due to the large volumes of exports. He further said that 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. However, he believes crypto settlements are only possible under relatively
small contracts and with friendly countries open to accepting coins.
Chebeskov’s
comments provide some
clarity to an earlier statement issued by the head of the
Parliamentary Energy Committee.
Pavel Zavalny had mentioned bitcoin as a possible substitute for western currencies
in Russian energy exports, and natural gas in particular.
Meanwhile,
the Central Bank of Russia has softened its stance on crypto payments
within the context of foreign trade relations. In May, a provision allowing
Russian companies to make such transactions for import and export purposes has been added to the new bill "On Digital Currency" drafted
by the Ministry of Finance.
Recognising
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 for such deals, the report details.
The United States and its allies have been trying to prevent the Russian Federation from using cryptocurrencies to circumvent sanctions imposed over its ongoing military invasion of neighbouring Ukraine. Some global crypto platforms have already blocked Russian accounts, RTVI notes.
0 Comments