BRICS: Russia adopts cryptos to export its oil to India

In the shadow of economic restrictions imposed by the West, Moscow traces a new path for its energy trade. Faced with the exclusion of the international financial system, Russia has found an alternative solution: the use of Bitcoin (BTC) and Tether (USDT) to bypass sanctions and ensure the continuity of its oil exports to its BRICS allies.

An oil trade now backed by cryptos

Western sanctions have considerably restricted Russia's capacities to trade in conventional currencies. Deprived of access to the dollar and the Swift system, Moscow had to explore other options with its BRICS partners to secure its financial flows with its Asian partners. It is in this context that cryptos like Bitcoin and Tether (USDT) have become privileged tools to facilitate cross -border payments.

• An economic necessity: faced with restrictions, Russia had to turn to alternatives to maintain its international trade;
• The bypass of sanctions: Cryptos avoid Western banking restrictions by operating outside traditional circuits;
• Constant volumes: a Russian oil merchant would have declared that these transactions represent tens of millions of dollars each month.

The process is based on a system of intermediaries and offshore accounts. Concretely:

• A Chinese Russian oil buyer pays in yuan on an offshore account;
• The financial intermediary converts this sum to crypto;
• The funds are then transferred to Russia, where they are exchanged in rubles.

This mechanism accelerates transactionsto guarantee better financial discretion and to operate without going through banks under international surveillance.

Towards a sustainable adoption of cryptos in the BRICS trade?

Beyond its cyclical aspect, this strategy could well fit into a broader dynamic, especially within the framework of the BRICS. These emerging economies have been looking for their dependence on the US dollar for several years, perceived as a geopolitical weapon in the United States.

• An emerging trend: other states under sanctions could follow the Russian example and adopt cryptos for international trade;
• A threat to the dollar: if the BRICS generalize the use of cryptos, this could weaken the hegemony of the greenback in world exchanges;
• A strategic positioning: Russia is testing an economic model that could be taken up and amplified in the future.

However, some partners of the BRICS Alliance such as China and India remain cautious about the rise of cryptos.

• A contrasting posture: although China allows certain transactions in digital yuan, the government continues to restrict the use of bitcoin on its territory.
• A still vague legal framework: the question remains open to the future of crypto transactions in Chinese official trade.
• Internal resistances: the central banks of the BRICS could hesitate before massively adopting cryptos as a transaction tool.

However, even in the event of reduction of sanctions, “the crypto will remain a key tool, because it allows to operate more quickly and without restriction”.

The use of cryptos by Russia in its oil trade poses several fundamental questions:

• Will cryptos become a strategic lever for states under sanctions?
• Will the Russian model inspire other nations?
• Will the BRICS adopt alternative monetary solutions on a large scale?

If this approach were to become widespread, it could upset the financial power relations and accelerate the transition to a multipolar economy, less dependent on Western institutions. The next few months will be decisive to observe whether this trend extends to other members of the BRICS and if the rise of cryptos in world trade becomes inevitable.