Russian Companies in the Commodities Sector Embrace Stablecoins for Transactions with Chinese Partners

Russian companies in the commodities sector are turning to stablecoins, such as Tether, to facilitate transactions with their Chinese counterparts. The move comes as international restrictions and increased compliance measures have made it challenging for Russian firms to execute financial transactions. Some settlements are being conducted through Hong Kong as a workaround for the difficulties faced by Russian companies in receiving payments and purchasing equipment and raw materials. The adoption of stablecoins by Russian firms reflects the lasting impact of international restrictions imposed in response to the conflict in Ukraine. Stablecoins offer advantages such as faster transactions and lower costs compared to traditional methods. The use of stablecoins for payments is not unique to Russian firms, as countries under sanctions, like Venezuela, have also turned to Tether for conducting transactions. The Russian central bank, which had previously considered a blanket ban on all cryptocurrencies, is now considering legislation to establish a legal framework for the use of stablecoins in international transactions.