Monday, September 15, 2025

Russian Commodities Firms Turn to Stablecoins to Evade Sanctions

Russian commodities firms have begun utilizing stablecoins, such as Tether Holdings Ltd.’s USDT, to facilitate cross-border transactions with Chinese clients and suppliers. The move comes two years after the start of the Russia-Ukraine conflict, which has led to challenges in receiving payments and purchasing equipment and raw materials, even for unsanctioned companies.

According to Bloomberg, which cited top executives at two major Russian metals producers who declined to be identified, the use of stablecoins has become a viable alternative to traditional banking channels, which have become increasingly difficult to navigate due to the threat of secondary sanctions by the US Treasury Department. 

The transactions, which sometimes go through Hong Kong, offer a faster and more cost-effective solution compared to slower transactions or the risk of frozen overseas bank accounts.

Ivan Kozlov, an expert on digital currencies and co-founder at Resolv Labs, told the publication that the use of stablecoins for cross-border settlements is not uncommon in countries facing dollar liquidity issues and capital controls. 

The growing role of cryptocurrencies in international settlements has also prompted a shift in the Russian central bank’s approach to the industry. While previously considering a blanket ban on cryptocurrencies, the Bank of Russia now supports experimenting with such payments for cross-border transactions.


Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

New Found Gold: The Strategic Maritime Resources Purchase

Amex Exploration: Revised Perron PEA Has INSANE Economics

Aris Mining: The Multi Billion Dollar Soto Norte PFS

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Kremlin Sets Sanctions Relief as Condition for Black Sea Deal Implementation

Moscow has attached significant economic preconditions to a limited Black Sea navigation agreement brokered by...

Thursday, March 27, 2025, 12:52:00 PM

UK Hits Russia With New Sanctions as Trump Signals Relief

PM Starmer also announced £4.5 billion in military assistance for 2025...
Tuesday, February 25, 2025, 04:32:00 PM

Moody’s, Fitch Downgrade Russia’s Credit Rating to Junk

In yet another blow to Russia’s economy, Fitch and Moody’s both downgraded the country’s credit...

Thursday, March 3, 2022, 11:29:00 AM

Ukraine’s Deputy PM Asserts Strikes on Russian Refineries Are Fair Game Despite US Warnings

Ukraine’s Deputy Prime Minister for European and Euro-Atlantic Integration Olga Stefanishina made a bold declaration...

Friday, March 22, 2024, 11:48:00 AM

New UK Sanctions Threaten Putin’s Hidden Oil Network Amid War With Ukraine

The United Kingdom has announced a new wave of sanctions targeting entities facilitating Russian oil...

Sunday, December 22, 2024, 07:46:00 AM