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Russian Finance Ministry says there is no place for crypto in oil trading

Source: Adobe Stock / Negro Elkha

Russia’s Finance Ministry has cast doubt on claims of the nation selling oil for crypto – but says blockchain-powered tokens could play an “alternative” role in small-scale exporters’ trading relationships.

According to RTVI, Ivan Chebeskov, the head of the financial policy department at the Ministry of FinanceRussia does not intend to do business with bitcoin (BTC) or other coins – although it is happy for private sector companies to use coins in “barter” type contracts.

The ministry has previously said it wants to classify crypto as an asset class and “not a means of payment.” As such, the cryptography would – under the ministry’s proposals – be protected by proprietary rights and could not be used in conventional financial contracts. It could only be used in “barter” type trade agreements, in which coins were “exchanged” for goods and services.

Oil exports, however, seem to be irrelevant.

Chebeskov has been quoted as saying:

“[Our] work is to give [Russian businesses] an alternative [with crypto], and not to say that now Russia is going to use crypto to pay for everything. These are not exchanges carried out by the State. These are just private matters. And oil probably won’t be sold for bitcoin due to high volumes [involved].”

Chebeskov added that crypto-powered trade is only possible in “relatively small contracts” and with “friendly countries” that are open to using crypto in trade deals.

The ministry has updated a bill – originally launched in February – that aims to “legalize” and regulate the crypto industry with a clause that would allow international merchants to make and receive crypto payments. Some had previously speculated that this clause could allow state-owned energy exporters to accept crypto payments for oil and gas.

But Chebeskov’s comments appear to have put an end to such discussions. He claimed, however, that the crypto-skeptic central bank was now ready to allow Russian companies to do international crypto business. But, as previously reported, the bank has insisted that it will only give companies the green light to start crypto-based trading if they can ensure the coins are kept clear of the cryptocurrency. Russian economy.

Chebeskov added that crypto was an ineffective tool for sanctions evasion efforts, saying:

“Why did the Americans say they would try to block [Russians from using crypto platforms]? Because in fact, all public cryptocurrencies are quite easy to trace. They are not very opaque: it is a myth.

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