Bitcoin in exchange for gas.. Russia faces the Western sanctions with an economic bomb

Bitcoin in exchange for gas.. Russia faces the Western sanctions with an economic bomb

Russia plans to counter Western sanctions, after the Ukraine attack, by selling oil and gas in cryptocurrency bitcoin or the Russian ruble, rather than the US dollar or the European euro.

During the past two days, Moscow raised the slogan "Petro Bitcoin instead of Petro Dollars", and as a result, the value of the world's most famous cryptocurrency rose, exceeding 45 thousand dollars.

Experts say to "Sky News Arabia" that "Putin's decision will enhance the value of the Russian ruble against the US dollar, and it will be a Russian economic bomb to confront sanctions."

Russia is the third largest cryptocurrency mining country in the world after the United States and Kazakhstan, and Russians' cryptocurrency transactions are estimated at about $5 billion annually, according to the Russian Central Bank.

Cryptocurrencies have become one of the prominent weapons in the Russian-Ukrainian war, while Moscow uses them to ease the impact of sanctions, Kyiv relies on them to finance the army and meet the necessary needs.

“When it comes to 'friendly' countries like China or Turkey, Russia is ready to be more flexible in terms of payment options," says Pavel Zavalny, head of the Energy Committee of the Russian State Duma.

"Alternative ways to pay for Russian energy exports instead of in US dollars are being considered, as it would be via rubles or bitcoins," he adds.

"We have been proposing to China for a long time to switch to settlements in national currencies against rubles and yuan," the Russian official added, noting that with Turkey it would be "lira and ruble."

Western countries imposed severe sanctions on Moscow and froze about $300 billion in Russian reserves held abroad, in a move described by Russian Foreign Minister Sergei Lavrov as a "theft".

Moscow's plan to get out of the sanctions stalemate has prompted European Central Bank President Christine Lagarde to express concern that cryptocurrencies are being used as a loophole to avoid sanctions against Russia.

Lagarde said she was "extremely concerned" about the large amount of Russian rubles being converted into crypto assets.

In the United States, US President Joe Biden launched a project to issue a "digital dollar", and asked several federal agencies to prepare reports on the risks associated with cryptocurrencies and how to address them.

For his part, Egyptian economic expert Nour Nada stressed that Putin's decision "put Washington and the West before difficult choices, and represents an economic nuclear bomb."

As for banking expert Ahmed Shawki, he says, "The intention of the Russian state to sell Russian oil in rubles threatens the throne of the US dollar."

He added that "selling gas in rubles will put pressure on the dollar and lower its price against different currencies," noting that "Russia possesses huge reserves of oil and gas, enabling it to continue implementing its plan to pressure the West."