Russia Mulls Selling Natural Resource Exports in Bitcoin

In the wake of tough western sanctions, Russia is being forced to find alternative payment arrangements for its natural resource exports, such as the ruble, bitcoin, and even gold.

On Thursday, chairman of the State Duma committee Pavel Zavalny announced that Russia is open to accepting various methods of payment for its exports, including bitcoin and gold. However, he said that the preferred method of payment will be dependent on the country’s foreign relations status towards Russia.

“When it comes to our ‘friendly’ countries, like China or Turkey, which don’t pressure us, then we have been offering them for a while to switch payments to national currencies, like rubles and yuan,” Zavalny said. “With Turkey, it can be lira and rubles. So there can be a variety of currencies, and that’s a standard practice. If they want bitcoin, we will trade in bitcoin.”

Zavalny’s latest proposition comes a day after Russian President Vladimir Putin announced that “hostile” nations will have to pay for natural gas in rubles. The State Duma reiterated Putin’s remarks, adding that Russia will also accept gold as payment. “When we exchange with Western countries…they should pay in hard money,” Zavalny continued. “And hard money is gold, or they must pay in currencies which are convenient for us, and that is the national currency— ruble. That relates to our ‘unfriendly’ countries.”

However, given recent volatility across crypto markets, conducting transactions on such a large scale may prove to be risky. Since reaching a record-high in November, the price of bitcoin has shed a lot of its value, and currently trades at around $44,000 at the time of writing. On the other hand, though, with Russia open to conducting crypto trades for major commodities, it could set a precedent where countries conduct transactions in a stateless monetary system.


Information for this briefing was found via the Nasdaq. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

Amazon Hints At Potential Cryptocurrency Acceptance

Bitcoin noted some robust gains over the weekend following a series of bullish comments from...

Monday, July 26, 2021, 03:19:00 PM

HIVE Blockchain Nearly Doubles Bitcoin Mining Capacity

HIVE Blockchain Technologies (TSXV: HIVE) appears to be heavily focused on expansion, with the company...

Friday, November 6, 2020, 09:44:42 AM

Spain Pushes Investigation On How Russia Could Have Influenced Catalonian Independence

The Spanish judge overseeing the investigation into Russian interference in the Catalonian independence process has...

Thursday, February 1, 2024, 06:47:00 AM

Michael Saylor Claims There’s “60% Risk-Free Returns” At The Bitcoin Lake

Michael Saylor, executive chairman of MicroStrategy (NASDAQ: MSTR) and one of the most outspoken advocates...

Monday, December 30, 2024, 11:18:00 AM

A Discussion On Gold, Silver, and Bitcoin With Florian Grummes

Today on the Daily Dive we sit down with returning guest Florian Grummes, a precious...

Wednesday, July 28, 2021, 01:30:00 PM