Russian companies have been using cryptocurrencies like Bitcoin and USDt to facilitate trade with China and India amid international sanctions, according to a Reuters report.
Russian oil companies have used crypto assets including Bitcoin (BTC) and Tether’s USDt (USDT) for international trade, Reuters reported on March 14, citing four sources with direct knowledge of the matter.
One Russian oil trader reportedly conducts tens of millions of dollars worth of monthly transactions using digital assets, according to a source who spoke on condition of anonymity due to a non-disclosure agreement.
While the Russian finance minister publicly declared in late 2024 that Russia is free to use assets like Bitcoin in foreign trade, the use of crypto in oil transactions with China and India had not been previously reported.
Russia’s oil trade in crypto: How does it work?
According to Reuters, Russia’s foreign oil trade in crypto involves intermediaries who manage offshore accounts and facilitate transactions in the buyer’s local currency. One example includes a Chinese buyer of Russian oil that pays a trading company acting as a middleman in yuan into an offshore account.
The middleman then converts payments into crypto assets and transfers it to another account, which then sends it to a third account in Russia and converts it to Russian rubles, sources said.
Crypto will be used no matter of sanctions
According to one of Reuters’ sources, crypto will likely continue to be used in Russia’s foreign oil trading regardless of whether any sanctions are in place and even if the sanctions are lifted and Russia is free to use the dollar.
“It is a convenient tool and helps run operations faster,” the report said, citing the source.
Bitcoin remains highly restricted in mainland China
While Russia has been increasingly open to Bitcoin, including its use in foreign trade, mainland China has maintained a cautious and restrictive approach toward cryptocurrency.
They demolished most of the “blue wall” at the general election, and now the Lib Dems are eyeing up Labour voters.
Strategists see an opportunity in younger people who, over the course of this parliament, may be priced out of cities and into commuter belt areas as they seek to get on the housing ladder or start a family.
Insiders say the plan is to focus more on the cost of living to shift the party’s appeal beyond the traditional southern heartlands.
“There’s a key opportunity to target people who were 30 at the last election who over the next five years might find themselves moving out of London, to areas like Surrey, Guildford,” a senior party source told Sky News.
“We also need to be better at making a case for a liberal voice in urban areas. We have not told enough of a story on the cost of living.
“We need a liberal voice back in the cities – areas like Liverpool, where there is strong support at a council level that we can use as a base to build on.”
Liverpool is a traditional Labour heartland but in January lost its first local authority by-election there in 27 years to the Lib Dems.
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Carl Cashman, the leader of the Lib Dems on the city council, says it’s a result that shows the potential to make gains in areas where the party came third and fourth at the general election.
Image: Carl Cashman is the leader of the Liverpool Liberal Democrats
“One of the cases I have been making to the national party is that Liverpool should be a number one target.
“We are almost at the end of the road when it comes to the Conservatives, so we need to start looking at areas like Liverpool,” he said, adding that Manchester, Sheffield and Newcastle could also be ripe for the taking.
However, the party faces a challenge of making a case for liberalism against the rising tide of populism.
Sir Ed Davey, the party leader, is trying to position himself as the only politician who is not afraid of holding Reform UK leader Nigel Farage to account.
He has recently unveiled a plan to cut energy bills by changing how renewable projects are paid for and says he will boycott Donald Trump’s state dinner. It is these green, internationalist policies that insiders hope can hoover up support of remaining Tory moderates unhappy with the direction of Kemi Badenoch’s party and progressive voters who think Labour is more of the same.
However, strategists admit it is difficult to cut through on these issues in a changing media landscape, “when you’re either viral or you’re not”.
‘Silly stunts’ here to stay
Farage has no such problem, which Davey has blamed on a national media weighted too heavily in favour of the Reform UK leader, given the size of his party (he has just four MPs compared to the Liberal Democrats’ 72).
But the two parties have very different media strategies. This week, on the same day Farage held a Trump-style press conference to announce his immigration deportation plans, with a Q&A for journalists after, the Liberal Democrat leader went to pick strawberries in Somerset to highlight the plight of farmers facing increased inheritance tax.
Image: Sir Ed Davey takes part in strawberry picking with Tessa Munt, the MP for Wells & Mendip Hills. Pic: PA
Some Lib Dems have questioned whether the “silly stunts” that proved successful during the general election are past their shelf life, but strategists say there will be no fundamental change to that, insisting Sir Ed is the “genuine nice guy” he comes across as and that offers something different.
The Lib Dems ultimately see their strength as lying not in the “airwaves war” but the “ground war” – building support on the doorstep at a local level and then turning that into seats.
“Our strategy is seats, not votes. Theirs is votes, not seats,” said the party source, suggesting Farage’s divisiveness might backfire under a first past the post system where people typically vote against the party they disklike the most.
“The next election won’t be about who is saying the meanest things.”
‘Don’t underestimate us’
There is broad support within the party behind that strategy. Cllr Cashman said a greater use of social media could help attract a younger demographic, along with putting forward “really fundamental, powerful liberal ideas” on issues such as housing.
But he said Davey is “never going to do the controversial things Farage does”.
“The way we reach people, the traditional campaigning, is what makes us strong. Just because we are not always on the airwaves, do not underestimate us.”
Image: Reform UK leader Nigel Farage. Pic: PA
For Liberal Democrat peer and pollster Dr Mark Pack, there are reasons to be confident. On Friday, the party won a local council by-election in Camden, north London – “Sir Keir Starmer’s backyard” – with a swing from Labour to the Lib Dems of 19%.
It is these statistics that the party is far more focused on than national vote share – with Labour’s misfortunes opening an opportunity to strategically target areas where voters are more likely to switch.
“One of the lessons we have learned from the past is that riding high in opinion polls doesn’t translate into seats.
“We are really focused on winning seats with the system in front of us. There is a route to success by concentrating on and expanding on what we have been good at.”