Russia May Accept Bitcoin For Gas Exports, Says Lawmaker – Bitcoin News

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Russia is moving away from the dollar and the euro as payment options for its energy exports, and bitcoin has been mentioned as a possible alternative alongside the ruble and partner countries’ national currencies. A senior parliamentarian has indicated that Moscow may use cryptocurrency for natural gas and other resources.

Russian Official Lists Bitcoin Among Alternative Settlement Methods For Its Gas

The Russian Federation has taken steps in response to unprecedented Western sanctions imposed following the invasion of Ukraine. The energy-rich country is now looking for other currencies to replace the US dollar and the euro in its gas trade.

On Wednesday, President Vladimir Putin announced that Russia will ask “unfriendly” countries to pay with rubles for the natural gas they buy. EU Member States, many of which rely heavily on Russian gas supplies for heating and power generation, fall into that category.

US and European sanctions hurt the Russian economy and fiat currency. Some measures are aimed at accessing the global financial market and foreign exchange reserves. The ruble gained some ground after Putin’s announcement, as gas prices rose in Europe.

“If we can’t store, acquire, pay with a currency, why should we trade in it?” Pavel Zavalny, head of the Energy Commission of the State Duma, the House of Representatives, commented for Russian media on Thursday.

“Gas is just the beginning, it will affect other sources as well. If they want to buy, let them pay in hard currency, for us that’s gold, or in currencies that are convenient for us, that’s the national currency,” the legislator said.

Zavalny explained that settlements with friendly countries like China and Turkey can be made using the ruble or their currencies, the yuan and the lira. Serbia can pay in convertible foreign currency or Russian rubles. He further elaborated:

The set of currencies may vary and that is normal. If there are bitcoins, we trade bitcoins.

The official added that a number of European countries are now ready to buy Russian fuel with rubles. “To do this, we just need to solve some organizational problems and conclude additional agreements. Our obligations under the contracts will not change. If they don’t pay for the gas, there simply isn’t any gas,” he said.

Russia has been trying to reduce its dependence on the dollar even before the military crisis in Ukraine. In October, Deputy Foreign Minister Alexander Pankin told Interfax that Moscow could partially replace the dollar in its currency reserves and trade settlements with other fiat currencies and possibly digital assets such as bitcoin. His comments came shortly after Putin himself said in an interview with CNBC that cryptocurrency could be used for oil trade settlements in the future.

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Bitcoin, Crypto, cryptocurrencies, currencies, Currency, Dollar, EU, Euro, Gas, National Currency, Natural Gas, OIL, Ruble, Russia, Russian, Russian Ruble, Sanctions, Settlements, US, US Dollar, Ukraine

Do you expect Russia to use cryptocurrency in settlements for its gas and oil exports? Tell us in the comments below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’ quote: “Being a writer is what I am, not what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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