Ministry matters

Russian Finance Ministry Rules Out Selling Oil For Bitcoin CryptoBlog

The Russian government sees bitcoin as a payment option for small business transactions, not oil exports, the country’s finance ministry said. A senior official pointed out that the department means cryptocurrencies can be used in barter deals, but not as legal tender.

Crypto Payments Not For Russian State Institutions, Finance Ministry Says

Cryptocurrency payments, in terms of international transactions, are considered by Moscow authorities 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 financial policy department of the Ministry of Finance, Ivan Chebeskov, who recently spoke with journalists about this.

The ministry proposes to use cryptocurrency as an asset, not a means of payment, the senior official noted. 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. Quoted by RTVI, Chebeskov clarified:

The task is to provide an alternative, not to say that Russia is now paying for everything with crypto. These are not public establishments but only private companies.

The representative of Minfin pointed out that oil would hardly be sold for bitcoins due to the large volumes of these exports. And while not all of Russia’s partners will be able to switch to national currencies despite growing difficulties with US dollar and euro payments, he believes crypto settlements are only possible under relatively small contracts. and with friendly countries open to parts.

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.

Meanwhile, the Central Bank of Russia has softened its stance on crypto payments in the context of foreign trade relations. In May, a provision allowing Russian companies to carry out such transactions for import and export purposes was added to the new draft law “On digital currency” drafted by the Ministry of Finance.

Recognizing cryptocurrency as property in the Russian Civil Code and amending an article on barter exchanges in the legislation governing the foreign economic activities of Russian entities are also necessary to fully open the door to this type of agreement, the report details. .

The United States and its allies have attempted to prevent the Russian Federation from using cryptocurrencies to circumvent sanctions imposed for its ongoing military invasion of neighboring Ukraine. Some global crypto platforms have already blocked Russian accounts, RTVI notes.

Keywords in this story

Bill, Legislation, Regulation, Regulations, Central Bank, Crypto, crypto payments, crypto regulations, Cryptocurrencies, Cryptocurrency, Energy, Exports, ministry of finance, Gas, Law, OIL, Russia, russian, Sanctions, Ukraine , War

Do you think Russia might change its mind about crypto payments in the oil trade? Share your expectations in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: “Being a writer is who I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.