Under the heavy sanctions, Russia is struggling to discover new ways of increasing its revenue and has suggested the likelihood of letting Turkey and China make their payments for energy through Bitcoin.
Pavel Zavalny the energy chief of the Russian Federation has suggested the option of taking Bitcoin from friendly countries as a method of payment against its gas and oil, countries like Turkey and China.
He stated that the countries could pay Russia for its energy in Rubles, Turkish Lira, Chinese Yuan or they can also pay in Bitcoin (BTC) instead of US dollar which is used as per international standards.
According to RBC news media from Russia, Zavalny Energy Duma Committee of State Chairman at a press conference on Mar 24 stated that officials from Turkey and China are discussing with him about the change to preferable currency settlements for our country’s largest exports.
The proposal has been under discussion for a long time with China to shift the settlements in Russia and China’s national currencies of yuan and ruble. And in the case of Turkey, it would be ruble and lira. The currency sets could be different from the normal routine. We could trade with Bitcoins if it is Bitcoins.
He also said that countries who are not friendly might be paying in gold or Rubles for their oil requirement. Although, it’s not yet clear if Russia could change its terms of current contracts with nations paying in USD or Euros.
The Russian government has been searching for ways through which it can avoid economic sanctions placed by the international community against its military operation in Ukraine. All banks of Russia have been disconnected from the SWIFT system to stop Russia from the cross-border settlement of their payments and most of the business organizations have been barred from dealing with Russians for their gas and oil trading.
Russian energy export is the main source for Europe which is for them becoming difficult to replace. Russia has generated $119 billion in revenue from the trade of gas and oil in 2021, as per the Reuters report. According to Russian officials, out of a total of $388.4 billion exports in 2021the trade of energy was 53.8% including natural gas, kerosene oil, electricity, and coal.