Russia’s Desire to Accept Bitcoin For Oil and Gas Drives Price Above N18m

Russia’s Desire to Accept Bitcoin For Oil and Gas Drives Price Above N18m

  • Russia is considering selling its oil and gas in bitcoin to circumvent US and other Western countries' sanctions
  • The country said it will start accepting the prime crypto as payment for its oil and gas as it finds it increasingly hard to trade in the US dollar
  • Russia said it has asked friendly countries like Turkey and China to either pay in Rouble or Bitcoin in order to meet obligations

As economic sanctions by Western countries pile up against Russia continues to take their toll, Moscow said it may start accepting crypto, especially Bitcoin as payment for oil and gas.

At the time of this report, bitcoin was trading at N18.7 million, which is a 4 per cent increase for Friday, March 25, 2022, a report by CNBC said.

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Russia wants to start accepting Bitcoin for oil and gas.
Russia wants to start accepting Bitcoin for oil and gas. Credit: Paul Roon
Source: Getty Images

'Friendly' countries can make payment in any currency other than the dollar

The Chairperson of Russia’s energy committee said that the country is ready to apply flexibility with terms of payment for friendly countries like China and Turkey.

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The committee said it is mulling various options for paying for Russia’s energy export, Pavel Zavalny, chairman of the committee said.

Apart from the usual currencies, Zavalny also said that the Turkish Lira and Russian Rouble in regards to trading with Tukey can be exchanged in Bitcoin instead of the dollar, Nairametrics said.

Russia’s president, Vladimir Putin pledged on Wednesday, March 23, 2022, that the country will require friendly countries to pay in its own currency the rouble for oil and gas. This was reiterated by Zavalny.

The statement by Putin, energy experts say might, might exacerbate the energy market as European gas prices soared following Putin’s announcement.

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Zavalny repeated Putin’s announcement saying that any country intending to buy its oil and gas can do so in gold or other currencies that are suitable for them.

Russia moving away from trading in dollar

Co-founder of Coin Metrics, Nick Carter said that pressure from Western countries has pushed Russia to want to diversify into other currencies. The country has started to divest from all US Treasury bonds since 2014 as it began to prepare for this transition.

According to Carter, the Russians seem determined to abandon the dollar, as the country remains a top natural gas exporter.

Putin changing views on Bitcoin and other cryptocurrency

Putin had said in 2021 that he was not sure that Bitcoin can take the place of the US dollar in oil trade settlement.

US, UK, others pile economic pressure on Russia over the Invasion of Ukraine has reported that the United States President, Joe Biden on Thursday, February 24, 2022, unleashed what he calls a devastating set of sanctions against Russia for the brazen invasion of Ukraine.

Biden said the new sanctions will squeeze the Russian economy and, while it may not deter Putin, who has some allied countries, will force his people to call him to order and make him leave Ukraine.

According to Biden during a television address to Americans, said Putin chose the war as he has been building blood banks and hospitals across the border with Ukraine in preparation for the attack that has now claimed lives on both sides.


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