Topic: Russia can evade sanction through cryptocurrencies - page 3. (Read 1812 times)

They have. Currently their Crude Oil is sold to India for very cheap and discounted prices, then India sells them to Europe, China, and anywhere where it's needed. Because India took the risk, they're making billions from Russian Oil trades. I believe India is using the Ruble for their trades with Russia because they can't use the U.S. Dollar.

If that fails, they could use Gold. But if THAT fails, they could use - ?

Yes. A Trump win, would be a huge win for Russia. Even if Trump loses (which I seriously doubt), the US will find ways to broker a deal between Russia-Ukraine. Wars can't last forever. Either Russia conquers Ukraine, or Ukraine emerges victorious.

Sanctions are only a temporary means to disrupt a country's economy. By now, Russia has found a way to circumvent them. It has powerful allies willing to support it every step of the way. China, Venezuela, Iran, and North Korea are one of them. Venezuela alone has the world's largest oil reserves. And China is the second-largest economy in the world. It's this reason why Russia's "war machine" keeps chugging along as usual. Hopefully, 2025 marks the end of this nonsense as the world finally comes together in peace. Maybe the relationship between Russia and the West will be restored? Only time will tell.

Although there has not been any official announcement, there have been many rumors about a peace agreement being discussed by both Ukraine and Russia and even Ukraine has lowered its tone to achieve peace. Because the President of Ukraine is concerned that if Trump is elected and the scenario of stopping aid could happen at any time, finding peace would be a good solution.

Meanwhile, the EU has launched the 14th sanctions package against Russia, but it seems that they have completely failed to punish Russia, so it is only a matter of time before they soon return to cooperation with Russia. Even if Trump is elected, it will happen faster than we think. The results of the US election will quickly change the outcome of the war between Russia and Ukraine.

After US sanctions were imposed on the Moscow Exchange, it actually turned into an “exchange office”, where the Chinese yuan became the only key currency. According to the Central Bank of Russia, the yuan now accounts for 99.6% of the exchange currency market. The remaining 0.4% comes from “friendly” currencies such as the Belarusian ruble and the Kazakh tenge.

Now the Central Bank calculates official exchange rates thanks to transactions that banks conduct among themselves outside the exchange. The future of the ruble, however, depends little on this. Therefore, now in Russia there is a situation where there is no single market and exchange rate. This will have corresponding consequences for the country’s economy, which is already not in the best condition. This destroys imports, which will cause stores to become empty. Therefore, what is happening with the ruble is quite complicated. If there is no foreign exchange market, then there is no clear mechanism for forming the exchange rate. In fact, it is formed by Central Bank employees in agreement with the Ministry of Finance. Today, the possible range of the ruble to dollar exchange rate is from 50 to 150.

In these circumstances, Russia is feverishly looking for a way out of the current critical situation. The need to find new opportunities to pay for imports and receive revenue from exports forced the Russian authorities to quickly legalize cross-border payments in digital currencies. Such a draft law was submitted to the State Duma of the Russian Federation back in April 2023, a year later it was changed and reintroduced, and now it has been adopted in the first reading. The law comes into force on September 1. That is, from September it will be possible to create platforms for the use of cryptocurrencies in international payments. Therefore, it was decided to create “experimental legal regimes” for specific projects. They can use digital currencies as currency values, means of payment in foreign trade, and others, and this will be regulated by the Central Bank of the Russian Federation.
https://zn.ua/ECONOMICS/v-rossii-naspekh-uzakonili-raschety-v-kriptovaljute-i-razreshili-ikh-majninh.html

It is unlikely that all of Russia’s major international trade partners will be interested in accepting cryptocurrency and paying with it. This is especially true in China and India, where cryptocurrency is not treated very well. But the situation in general is very interesting for the cryptocurrency market.

In this regard, I believe the Western power and their allies are not so particular about the sanctioning of Russia through exchanges, because if they do, it will be more severe, they always have their way in cases like this. I can only think that they were smart enough to know that many cryptocurrencies are decentralised and can be accessed through a VPN. This means that people can perform crypto transactions that will be difficult for the authorities to decipher. Even the little they will know will be so stressful for them to achieve that. So why stress exchanges when there is an alternative (non-custodial) that can naturally mix the transaction?

You can see today that the Western sanction has almost no effect on Russia anymore. The world is evolving and cryptocurrency is the latest development around financial dealings, so all fingers are pointing to it in helping Russia to lessen the effect of the sanction.

"Where there's a will, there's a way". Governments always find a way around sanctions. They resort to doing business and trading under the table. It's what Russia's been doing after all these years. I see the current dilemma between the West and Russia as nothing more than pure drama. We all know both sides need each other. Even with the sanctions, some US-based businesses/companies are still doing business with Russia. Like McDonald's for instance which rebranded as "Tasty and That's It". Same company and business model under a new name.

Eventually, the West will change its mind and ease off its sanctions against Russia. It should only be a matter of time before this happens. A quick deal between Russia and Ukraine, and everything will be like nothing happened.

If Russia uses or is already using cryptocurrency to circumvent the sanctions that were imposed on it in connection with the military invasion of Ukraine, then it is quite logical that the international community will take measures to prevent this and thereby limit Russia’s ability to finance the war. Cryptocurrency cannot be separated from the economic and political life of states. Cryptocurrency is used in society and society will influence it whether we want it or not.

Russians can avoid sanctions and the resulting influence of states on cryptocurrency if they influence their government and Putin withdraws Russian troops from Ukraine. But approximately 70 percent of Russians support this war of conquest. Therefore, the Russians themselves are to blame for this situation.

I don't think it is good for the opposite parties to use cryptocurrency to sanction Russia. This doesn't make any sense at all. The marin reason why Bitcoin was established is to help us rule out the government dominance to our funds so we don't always depend on the  government for everything we have to be processed by them before we do anything. Cryptocurrency is meant to be easy and processed without any third parties. Now the government is trying to shift the sanction to include crypto which doesn't make any sense at all. They can sanction and do whatever they like but that should not include cryptocurrency.

I agree, because things like these are happening around us, and we are having many peoples those can do these easily without any problem, and they are taking good profit of these sanctions but sadly still a large community is suffering with these all because they are not able to have jobs and things which are important for them even peoples those are having money can go through for doubling their money easily, and they are also having peoples those can help them in these situations.

As mentioned Russia is big country with many neighbours and there are many opportunities for things like these we have many roads and other ways to bring smuggled things which are selling by agents, and they are giving commissions peoples those are helping them I have few peoples which are doing these and having many tricks without any serious trouble as well.

As someone who lived under sanctions for years I can only tell you that sanctions are evaded in many ways. Starting from small people who start smuggling which can be very profitable, it is especially easy if you know the people at the border... the people living in the border areas know each other very well. State smuggling is especially prominent, the state continues to import everything it needs, but it does so through secret channels, and in my country, people are still talking about how the state smuggled and where all the money from smuggling went.

And now imagine a big country like Russia, with so many borders, and friendly countries, and does anyone really think that goods are not coming from somewhere? These are fake companies, papers are redone, trading never stops, but where the money goes and who gets the most wealth it's the public secret.

Russians and USA and ukraine was creating the cryptocurrenciey it's not even secret anymore.
The USA wall street got money but no brains so they started work together with russians to build new money system off course they use it to avoid sanctions.
Becouse only brain can Do this ...USA was using germany enginering after war to build powrful military and cars because USA got no Brain ...now they use russians to build financial system but power will be USA hands

The sanctions did not work completely as planned, but they still slowly continue to work and bring their destructive effect to the Russian economy. Due to its enormous economic potential, Russia has a large margin of safety, but it is not unlimited. In addition, there is not enough unity in the world regarding the application of sanctions and Russia takes advantage of this. The main thing is that it can still sell its oil and gas, which brings it 60 percent of its total profits. But Putin’s Russia is already approaching the point beyond which its economy will begin to plummet.

The fact that Russia is trying to use cryptocurrency in international trade is clear evidence that it has serious problems in its financial sector, and no one needs its ruble. Russia has almost used up its main financial reserve - the National Welfare Fund, which has become the main reserve for financing the war in Ukraine. Of course, money and soldiers in Russia will not run out quickly, but armored vehicles and shells are running out, and the number of aircraft, ships and other expensive equipment is decreasing. North Korea has already handed over to Russia its five million half-defective shells, but it also has limited supply.

China doesn't use cryptocurrencies, their citizens use cryptocurrencies. This means that the government doesn't use crypto to avoid sanctions, to be honest, they don't need it because they produce everything and export goods to countries like the USA.

Mate, two years have passed, do you expect an answer soon? The answer is here, sanctions didn't affect Russia the way everyone was expecting because Russia can buy goods from neighbours like Turkey, Georgia, Armenia and etc... Buying process became slightly difficult for Russia and slightly expensive because of 3rd party countries, otherwise, there aren't devastating situation because of that ban.

It seems that the very difficult situation with the use of currency in international trade in Russia, after the Moscow Exchange was prohibited from using the dollar and euro, and trading using Indian rupees and the Chinese yuan showed significant difficulties, is pushing the Kremlin to use cryptocurrency.

The State Duma Committee on the Financial Market approved for adoption in the first reading bill No. 341257-8, which allows the Central Bank to launch an experiment on creating a platform for the use of cryptocurrencies in international payments from September 1.
In Russia, special legal regulation may be introduced for projects in the field of digital innovation. There is currently a ban on the use of digital currency for payments in the country. The bill approved by the committee provides the opportunity to use cryptocurrency “with certain features” within the framework of the EPR. For this purpose, it is established that the Bank of Russia performs the functions of an authorized and regulatory body on EPR issues in the field of digital innovations in the financial market. It is clarified that the EPR program in the field of digital innovations in the financial market may include the use of digital currency as a currency value, conducting transactions with digital currencies as a means of payment in foreign trade, defining the rights and obligations of residents and non-residents when conducting foreign exchange transactions with digital currency , as well as regulation of the activities of currency control authorities and agents in this area.
https://www.interfax.ru/russia/970577

Will cryptocurrency save the Russian economy from the impending steep dive into which it plunged itself with the attack on Ukraine? The answer will be very soon.

USDT is a stable and centralized currency, every transaction will be tracked, especially large transactions. Meanwhile, both are close allies, meaning both central banks can communicate and connect easily with each other. Do you think they will use USDT while they can use the currency of 1 of 2 countries to trade? I don't think they are stupid enough to use centralized cryptocurrency like USDT for their transactions to avoid sanctions. Using USDT is even more dangerous than using USD because their cryptocurrency transactions can be frozen at any time if the US requests Tether to do so.

I don't know what basis you base your claim that China and Russia are using cryptocurrencies for their transactions, but according to my understanding, they don't need cryptocurrencies like bitcoin, XRM... let alone centralized stablecoins.

i doubt their government uses the USDT, it would mean a large amount of sending USDT. if it's a known address, those USDT can be frozen. and they find it not in their best interest, remember they are dedollarizing. but the citizens i think in China and Russia could still be using stablecoins including the USDT.

the government of Russia and China do have their own version of SWIFT, they may be using them already if not their CBDC.

Russia and China are using crypto, including USDT for transactions with one another. This way they avoid sanctions and make payments much faster and more unnoticeably to the outside world.On the official agenda, they may be against cryptocurrencies, but this does not mean that they do not use them for personal gain.

I'm merely making a point that Bitcoin's Proof Of Work is a mechanism for burning something physical, such as Russian Oil, to produce something digital - An asset that's censorship-resistant, which is absolutely useful for a sanctioned country. Russia, Iran, Venezuela are countries that should mine Bitcoin with their Oil outputs.


Ethereum is Proof Of Stake.


👍

they still can sell their oil to different countries though. particularly to India which countries from the West are buying from India. making Inida the middleman. they are earning money through the oil and gas coming from Russia. Russia's economy isn't as bad as the rest of the world.

they might not need BTC anymore but if they are going to be mining, they'd probably trust developers that are from Russia such as Vitalik. which means mining ETH will make sense for them as well besides BTC.

But Russia should probably start using some of their Oil output to fuel industrial mining farms and mine Bitcoin. If they can't export and/or smuggle it all, then they should find more "experimental" ways to "export" them. The censorship-resistant path is through Proof Of Work through Bitcoin.