Russia’s Financial Policy Department Head Clarifies the Use of Crypto for Payment Settlements

The head of Russia’s finance ministry’s Financial Policy Department, Ivan Chebeskov, recently made the clarification that cryptocurrency payments, while recognized by authorities in Moscow as an international transaction tool for small businesses, cannot be used for Russian oil deliveries.

Chebeskov explained that the ministry endorses the use of crypto assets as a sort of barter for foreign transactions and not a means of payment. He elaborated:

“The task is to provide an alternative and not to say that Russia is now paying for everything with crypto. This is not about state settlements but private business only.”

The head of the Finance Policy Department further noted that oil cannot be sold for Bitcoin or crypto due to the sheer size of these exports. However, with many Russian partners unable to transition to national currency payments, Chebeskov noted that crypto settlements only work with smaller contracts and crypto-friendly countries.

These clarifications come after a statement by the head of the parliamentary Energy Committee, Pavel Zavalny, in March, noting that Bitcoin could serve as a substitute for western currencies in Russian energy exports.

Russia’s Central Bank Eases Restrictions on Crypto Payments

That said, the Central Bank of Russia has eased its restrictions against the use of crypto as payments for cross-border trade relations. The Ministry of Finance creates the provision for cross-border crypto solutions in a legislative bill termed “On Digital Currency” in May.

The report from the Financial Policy Department also explained that recognizing cryptocurrency as property under the national Civil code and amending an article in barter exchanges to include crypto barter provisions are critical to opening a channel for this payment option to flourish.