Russian Metallurgical Giants Embrace USDT for International Transactions

At least two of Russia’s largest metal producers, not subject to sanctions, have begun using the stablecoin USDT and other cryptocurrencies for international transactions. This was reported by Bloomberg, citing company executives.

According to them, the deals are primarily conducted with Chinese clients and suppliers. In some cases, transactions are routed through Hong Kong.

The publication highlights the challenges faced by commodity companies in receiving payments, even in the absence of direct sanctions against them. Their business partners also feel the pressure from international restrictions. Recently, the US Treasury demanded additional measures to enforce secondary sanctions compliance.

Earlier, the Bank of Russia announced its willingness to discuss the potential use of cryptocurrencies in cross-border transactions. However, companies were advised not to publicize such deals, a source close to the regulator told the publication.

In autumn 2022, it was publicly acknowledged that Russian companies were conducting cryptocurrency transactions with unfriendly countries “in limited volumes.”

In late February 2024, Russia permitted the use of digital financial assets and utility digital rights for international agreements. Additionally, a bill was introduced to the State Duma that defines a secured stablecoin and allows its use in foreign trade transactions.

In December 2023, the Exved exchange, focused on cross-border payments in foreign economic activities, was launched.