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Russian commodity companies that have struggled with financial transactions with Chinese partners have begun making payments in cryptocurrencies.According to the Ukrainian National News Agency, Bloomberg reported the news by citing people familiar with the matter.
Bloomberg wrote that at least two of the largest metal producers that have not been subject to Western sanctions have begun using Tether Holdings Ltd stablecoins and other cryptocurrencies to settle international transactions with mainly Chinese customers and suppliers.In some cases, payments are made through Hong Kong.
“The fact that Russian large Russian companies began to turn to blockchain two years after the invasion of Ukraine began in February 2022 highlights the long-term impact of international restrictions imposed on the country’s economy in response to the war,” Bloomberg wrote.
It is reported that since the invasion of Ukraine, Russia’s raw material trading companies have encountered problems in receiving payments, purchasing equipment and raw materials, from metals (including nickel and steel) to wood.Even in China, financial transactions have become more difficult this year.Because China has not joined international sanctions on Russia, it has become the main export market for many Russian commodities and a supplier of goods and equipment.This is mainly due to the US Treasury warning of secondary sanctions.
Meanwhile, some commodity companies have chosen different payment methods.For example, some steel producers use so-called barter transactions, which exchange goods for goods supplied to Russia.In this way, they can completely avoid cross-border transfers, the source added.
Source: Ukrinform
