Ukraine is taking steps to block Russia’s use of Bitcoin and other cryptocurrencies in foreign trade, as sanctions are being prepared to counter Russia’s attempts to evade Western sanctions through crypto payments.
The Ukrainian government has announced plans to impose sanctions and other measures to prevent Russia from using Bitcoin for international payments. This move comes in response to Russian Finance Minister Anton Siluanov’s recent acknowledgment that Russian companies have been using cryptocurrencies to circumvent sanctions imposed by Western countries.
Vladyslav Vlasiuk, an advisor to the Ukrainian president, revealed that Ukraine had alerted its international partners about Russia’s intentions earlier this year. Measures are already in development to deter unwanted crypto payments from Russia, as reported by Ukrainska Pravda.
In a statement, Vlasiuk emphasized that Ukraine was not caught off guard by Russia’s actions, stating, “Are we at all surprised? No, we were, without exaggeration, the first to draw our partners’ attention to such plans of the enemy back in the summer. Appropriate sanctions and other solutions to block the possibility of using unwanted cryptocurrency payments are already being prepared.”
Meanwhile, Russia has been exploring alternative ways to navigate around the sanctions that have hindered its international payment capabilities, even with key partners like China. Russian companies have reportedly turned to stablecoins such as Tether’s USDT for cross-border transactions, with some of the country’s largest metal producers already utilizing stablecoins for trade with Chinese counterparts.
The volume of these transactions remains unclear, but sources suggest that other payment alternatives are either slower or pose a risk of having overseas bank accounts frozen. Siluanov’s admission coincides with the recent establishment of a legal framework by the Kremlin for Bitcoin miners, allowing approved companies to utilize crypto for international trade.
As the geopolitical landscape continues to evolve, the use of cryptocurrencies in international trade is becoming increasingly prominent. With Ukraine taking proactive measures to block Russia’s crypto payments, the ongoing battle between sanctions and financial innovation is poised to shape the future of global trade dynamics.