Russia might accept Bitcoin as a payment option for oil and energy exports

russia bitcoin oil

The biggest country in the world Russia is now being sanctioned by the Western countries. Russia is invading Ukraine and continuous tensions are rising between the two nations. The common people and citizens mostly from Ukraine are suffering because of the war.

Amidst this chaos, Russia has announced on Thursday that it is considering Bitcoin and national currencies as payment options for their energy exports to its ‘friendly countries’. Some of the friendly countries with whom the talks are in progress for this step are China and Turkey.

Russia’s State Duma Deputy and Energy Committee Chairman Pavel Zavalny proposed this idea in a press conference on Thursday. Zavalny said that even other ‘unfriendly countries’ can buy oils and energy means from Russia and can pay the country in national fiat currency i.e. Russian Rubles.

While in western countries like The United States the prices of energy consumables are already soaring, people might feel fuelling their vehicles a little more heavy in their pockets. The exceeding prices may raise worries among the citizens and the complete energy market has come under tremendous pressure.

Also, Chaiman Zavalny said,

“If they want to buy, let them pay either in hard currency, and this is gold for us, or pay as it is convenient for us. The set of currencies can be different, and this is normal practice, so you can also trade bitcoin.”

Duma Deputy and Energy Committee Chairman Pavel Zavalny
Source: Twitter

How The United States of America is taking the charge?

Putin’s brutal war has led to higher energy prices and raised costs for Americans at home. Today, President Biden made clear that he will keep working to mitigate the pain American families feel at the pump and reduce our dependence on foreign oil and fossil fuel.

On March 9, The White House proposed a fact sheet on banning all the Russian Oil and Energy supplies. In the announcement, The U.S. is very clear that all the importations of Russian crude oil and certain petroleum products such as liquefied natural gas, and coal are to be ban. Last year, the country imported 700,000 barrels of crude oil per day from Russia and gave billions of dollars of revenue to Russia.

The executive order will also administer American companies and investors not to expand any efforts in Russia to draw the resources. The U.S. is likely to see a new record in prices for crude oil production and expects even higher by next year. Additionally, the Biden Administration promises new opportunities for a clean energy future to its citizens. America is seeing itself as a true energy independent country in the world.

According to AAA, the current gasoline price is hitting to $4.236 while a month ago it was $3.543. During Covid-19 situation the cost of per barrel was bottomed out while this year is is next to $130 per barrel.

Also, read - Ukraine’s President passes the crypto bill “On Virtual Assets” into Law

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