Russia Approves Bitcoin to Pay for Oil and Gas

Before the sanctions, Russia’s restrictions on cryptocurrency were unstoppable, contrary to the current proposal.

Pavel zavani, chairman of the Energy Commission of the State Duma, said that Russia would now accept bitcoin to pay for oil. He announced the news at a press conference on Thursday. However, Russia made it clear that only China and Turkey can pay for oil in bitcoin.

For centuries, Russia’s economy has been booming on oil and gas. So that this country is known as the “energy superpower” and has the world’s largest natural gas reserves. The oil and gas industry accounts for about 40% of its budget revenue. Russia’s economy has fallen sharply after facing sanctions from almost all aspects that support its economic growth. Trading in the Russian stock market also stopped, halving the value of the ruble, resulting in a loss to the dollar.

Bitcoin reached $44118 for the first time since early March. The digital coin showed an upward trend after the announcement. Cryptocurrency successfully recaptured the middle area near the current level. If the bulls can maintain the momentum, they may see further rise in the short term.

Russia Will Accept Bitcoin as a Payment Method for Oil and Gas

As Russia is listed as the eighth largest oil reserve country and the world’s leading natural gas exporter, it was speculated earlier that Russia would resort to oil and gas in sanctions. In fact, extensive speculation is now an option for Russia. Russia has lost investors since its invasion of Ukraine. The withdrawal of various countries led President Putin to accept bitcoin from neutral countries such as Turkey and China. Other countries considered “unfriendly” by withdrawing from economic relations with the Russian Federation must pay for oil in rubles and gold. According to zawani’s transcript version.

“If they want to buy, let them either pay in hard currency, which is gold for us, or pay in our convenient way, which is the national currency. As for friendly countries, China or Turkey, these countries are not involved in sanctions pressure… You can also trade bitcoin.”

Larry Fink, CEO of BlackRock, an investment management company, pointed out in an investor letter on Thursday. He speculated that the invasion led to an agreement on preventing economic and trade relations with Russia. In the firm commitment to support Ukraine, the West launched an “economic war” against Russia.