Why Is Bitcoin Going Up? Russia Uses Crypto in Oil Trade with China and India

Russia is using cryptocurrencies in a small but growing part of its oil trade with China and India, Reuters reported today (Friday). The move helps Russian companies bypass Western sanctions. The report cited four unnamed sources familiar with the matter.

Meanwhile, BTCUSD H1 chart shows the price gradually rising after finding support at a key level. Additionally, the cryptocurrency is trading above a bearish trend line’s support, potentially attracting more intraday buyers and adding bullish momentum.

Russian Oil Firms Leverage Crypto Transactions

Russian oil firms are using bitcoin and ether through intermediaries to convert yuan and rupees into rubles, the sources said. Stablecoins are also being used, though issuers like Tether can freeze funds if required by regulators.

One source said a Russian oil trader’s crypto transactions with China are worth tens of millions of dollars per month. The use of cryptocurrencies in Russia’s oil trade reportedly began in December after legislative changes allowed their use in international payments. Finance Minister Anton Siluanov said the shift was a response to sanctions.

Crypto Infrastructure Helps Russia Evade Sanctions

Western restrictions imposed after Russia’s invasion of Ukraine have disrupted trade with key partners. Chinese and Indian banks have become cautious with Russian-linked transactions to avoid scrutiny. In September, blockchain analytics firm Chainalysis reported that Russia’s central bank was leading crypto infrastructure efforts to evade sanctions. However, this is the first time cryptocurrency use in Russia’s $192 billion oil trade has been detailed.

Russian official Anton Gorelkin said sanctions would not fully block Russia from using cryptocurrencies. His comments followed new EU sanctions on Russian crypto exchange Garantex, which has been under US sanctions since 2022.

BTCUSD Finds Support at 80K Level

The BTCUSD H1 chart reveals that the price has established support at a crucial level of 80K, which holds significant importance. After forming a bullish reversal pattern, the price has begun moving upwards gradually. Although the price has managed to breach a bearish trendline, it has yet to generate a strong bullish momentum.

Despite this, as long as the price stays above the trendline, it could encourage more buyers to enter the market, potentially pushing the price toward the next resistance level, which is expected to be around 90K.

Trump Eyes Russia Ties, Sanctions Stay

Meanwhile, US President Donald Trump has expressed interest in improving ties with Russia and ending the Ukraine war, but sanctions remain in place. The sources said crypto will likely continue to play a role in Russia’s oil trade because it speeds up transactions.

A Kremlin adviser said cryptocurrencies are just one of several methods Russia is using to navigate payment challenges. Other sanctioned nations, including Iran and Venezuela, have also turned to digital assets to sustain trade while avoiding reliance on the US dollar.