In a landmark move, Russian lawmakers have passed a bill allowing businesses to use Bitcoin and other cryptocurrencies for international trade. This legislation, expected to take effect in September, aims to circumvent Western sanctions imposed due to the Ukraine conflict. It seeks to alleviate payment delays with major trading partners like China, India, and the UAE. Central bank Governor Elvira Nabiullina, a key supporter, stated that the first cryptocurrency transactions would commence by year’s end, facilitated by an “experimental” payment infrastructure.

The new law also regulates cryptocurrency mining and the circulation of digital assets while maintaining a ban on cryptocurrency payments within Russia. Delays in payment have significantly impacted imports, leading to an 8% decline in the second quarter of 2024. Despite efforts to use alternative currencies and develop a BRICS payment system, many transactions still depend on dollars and euros, risking secondary sanctions. Nabiullina highlighted that these sanctions have complicated import payments, extending supply chains and raising costs. The legislation aims to mitigate these economic challenges and streamline international trade operations. Anatoly Aksakov, head of the Duma lower house, called this a “historic decision in the financial sphere.

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