Russian commodity companies facing difficulties in conducting financial transactions with Chinese partners have started using cryptocurrency for payments. According to Ukrainian National News Agency Ukrinform, this news was reported by Bloomberg, citing informed sources.
Bloomberg reported that at least two major metal producers, not subject to Western sanctions, have started using stablecoins from Tether Holdings Ltd and other cryptocurrencies to settle international transactions with primarily Chinese customers and suppliers. In some cases, payments are being made through Hong Kong.
“In the two years since the invasion of Ukraine started in February 2022, Russian large enterprises have begun turning to blockchain, highlighting the long-term impact of international restrictions imposed on the country’s economy in response to the war,” Bloomberg wrote.
Since the invasion of Ukraine, Russian raw material trading companies, from metals (including nickel and steel) to timber, have faced difficulties in receiving payments, purchasing equipment, and acquiring raw materials. Even in China, financial transactions this year have become more challenging. This is mainly due to warnings of secondary sanctions issued by the U.S. Treasury Department.
Meanwhile, some commodity companies have opted for alternative payment methods. For example, some steel producers are using barter trade, whereby goods are exchanged for goods supplied to Russia. Sources added that through this method, they can completely avoid cross-border transfers.
Source: Ukrinform
