In a major legislative move, Russian lawmakers have passed a bill that will allow companies to use Bitcoin and other cryptocurrencies in international trade, a report from Returns. The development is part of Russia’s strategy to circumvent Western sanctions imposed after the invasion of Ukraine. The new law, expected to come into effect in September, is intended to tackle delays in international payments, particularly with major trading partners such as China, USA and the UAE.
JUST IN: 🇷🇺 Russian lawmakers approve bill that would allow companies to #Bitcoin and cryptocurrencies in international trade — Reuters photo.twitter.com/yFExWcIG9k
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Central bank governor Elvira Nabiullina, a proponent of the law, announced that the first cryptocurrency transactions will take place before the end of the year. The central bank will set up an “experimental” infrastructure for these payments, with further details pending.
“The risks of secondary sanctions have increased,” Nabiullina said. “They make payments for imports difficult, and that applies to a wide range of goods.”
The legislation also includes regulations on cryptocurrency mining and the circulation of other digital assets, but maintains the ban on cryptocurrency payments within Russia. The central bank stressed that payment delays led to an 8% drop in Russian imports in the second quarter of 2024.
Despite efforts to switch to trading partners’ currencies and develop an alternative BRICS payment system, many transactions still rely on dollars and euros via the SWIFT system, risking secondary sanctions. Nabiullina stressed that these sanctions have complicated import payments, lengthened supply chains and increased costs.
This move by Russian lawmakers is intended to ease the economic challenges of sanctions and ensure smoother international trade transactions. Anatoly Aksakov, the head of the lower house of the Duma parliament, reportedly told lawmakers: “We are making a historic decision in the financial sphere” by passing this legislation.