Russia Embraces Bitcoin for International Trade Amid Sanctions

Russian companies have begun using Bitcoin and other digital currencies for cross-border payments following new laws that allow such transactions.

Finance Minister Anton Siluanov announced this on national television on Wednesday.

Russia Is Changing Its Crypto Regulations

According to Reuters, the change comes as Western sanctions complicate trade with key partners such as China and Turkey. International banks have been reluctant to conduct transactions involving Russia to avoid regulatory scrutiny.

Putin's government sees Bitcoin as the perfect tool to avoid sanctions and engage in real-time cross-border trade. This year, the country has already legalized the use of cryptocurrency in foreign trade and introduced measures to support Bitcoin mining.

“As part of the experimental regime, it is possible to use the bitcoins that we have minted here in Russia (in foreign trade transactions). Such transactions are already happening. We believe that they should be expanded and developed. I am sure that this will happen next year,” said Finance Minister Anton Siluanov.

Meanwhile, Russia is already one of the top Bitcoin mining countries in the world. Siluanov stated that Bitcoin is being produced locally and is now being used commercially in a pilot framework. He expressed his hope to expand this practice, calling digital currency payments the future of international business.

Recently, President Vladimir Putin criticized the political use of the US dollar, saying it would prompt countries to seek alternative financial instruments.

Speaking earlier this month, he endorsed the widespread adoption of Bitcoin as an unregulated global asset. A few days after his statement, BTC reached the $100,000 mark in early December.

Inspired by this, Russian lawmaker Anton Tkachev proposed the creation of a bitcoin reserve to improve the country's financial capabilities.

“Who needs the US dollar? Russian companies are now using Bitcoin and other cryptocurrencies for international trade. Thanks to new laws, Russia can now mine bitcoin locally around Western sanctions,” wrote Mario Naufal on X (formerly Twitter).

Policy changes and regional mining restrictions

Russia has made significant changes to its crypto laws. The revised tax framework exempts crypto transactions from value added tax (VAT). Instead, crypto-related income, such as securities income, is subject to personal income taxes at 15 percent.

At the same time, the government is imposing new restrictions on Bitcoin mining in power-scarce areas. Mining will be banned in 10 states from January 2025 to March 2031.

Mining operations in energy-stressed regions such as Irkutsk, Buryatia and Trans-Baikal region will be suspended during peak demand periods, particularly from January 1 to March 15, 2025, and again from November 15 to March 15 in subsequent years.

These measures reflect Russia's balancing act—accepting cryptocurrency for international trade while addressing domestic energy challenges. The transformative policies reflect the government's strategic approach to integrating digital currencies into the economy.