The situation occurring in Ukraine at this moment in time is of course, heartbreaking to see and the sanctions imposed on Russia might appear to be complete with loopholes but the consequences of them can still not be underestimated and the recent spike in oil prices has left many fearing how this would affect their day to day lives.
Pavel Zavalny, The Russian Federation’s energy chief has stated that his country could possibly be open to accepting Bitcoin as a form of payment for oil and gas from what he deemed as ‘friendly countries’ such as China and Turkey. He said that crypto could be used to purchase commodities, rather than the international standard currency of USD.
Reports made from a news media source in Russia claim that the chairman of the state duma committee on Energy Zavalny has stated at a press conference that he and his representatives from China and Turkey have been in talks regarding preferred currency payments for Russia’s biggest export.
“We have been proposing to China for a long time to switch to settlements in national currencies of rubles and yuan. With Turkey, it will be lira and rubles. The set of currencies can be different, and this is normal practice. If there are Bitcoins, we will trade Bitcoins.”
Energy is by far the most important commodity that Russia exports to the world. Europe is especially reliant on its service and many working people are now left in fear, wondering how high can the prices spike. According to a report made by Reuters, the oil and gas trade was responsible for $119 billion in revenue in 2021. When you add electricity, kerosene, coal and natural gas, the energy trade accounted for 53.8% of Russia’s total $388.4 billion in 2021 exports.