dw.com
Russia Uses Cryptocurrency to Evade Sanctions
Faced with Western sanctions, Russian companies increasingly use cryptocurrencies, particularly in trade with China, for payments reaching tens of millions of dollars monthly, despite legal ambiguity and new sanctions targeting crypto-related entities.
- What is the legal status of cryptocurrencies in Russia, and how does this impact their use in international trade?
- The use of cryptocurrencies reflects a broader Russian strategy to distance itself from Western-controlled financial systems. This is happening despite the central bank's initial opposition and the ongoing legal ambiguity surrounding crypto's use in Russia. The situation highlights the formation of an alternative legal space where laws are flexibly applied based on political and economic interests.
- How are Russian companies utilizing cryptocurrencies to bypass Western sanctions, and what are the immediate financial implications?
- Russian companies increasingly use cryptocurrencies to circumvent sanctions imposed due to the war in Ukraine, particularly in trade with China, involving tens of millions of dollars monthly in some cases. This includes oil companies converting rupees and yuan into rubles and at least two large metallurgical companies using crypto as a backup payment method.
- What are the long-term implications of Russia's use of cryptocurrencies in circumventing sanctions, considering both the challenges and adaptations?
- The effectiveness of Russia's cryptocurrency strategy for international payments remains uncertain. New sanctions targeting crypto-related entities and the revival of sanctioned exchanges like Garantex (rebranded as Grinex) in other jurisdictions, along with the emergence of ruble-backed stablecoins like A7A5 (facilitating $9.3 billion in transactions in four months), demonstrate the ongoing challenges and adaptations in this evolving landscape.
Cognitive Concepts
Framing Bias
The framing emphasizes the success of Russia's efforts to use cryptocurrencies to avoid sanctions. While it mentions challenges, the overall tone leans toward portraying Russia's strategies as effective. The headline, if there was one (not provided in the text), likely would reinforce this.
Language Bias
The language used is largely neutral, though certain phrases like "токсични" (toxic) when describing the dollar and euro are loaded terms reflecting a particular viewpoint. The article could benefit from replacing these with more neutral language, such as "sanctioned" or "subject to restrictions.
Bias by Omission
The article focuses heavily on Russia's use of cryptocurrencies to circumvent sanctions, but omits discussion of the effectiveness of these methods and the overall impact on the Russian economy. It also doesn't explore counter-measures employed by Western nations to combat this strategy.
False Dichotomy
The article presents a somewhat simplified view of the situation, focusing on Russia's use of cryptocurrencies as a primary method of circumventing sanctions. It doesn't sufficiently explore other methods or the complexities of the global financial landscape.
Sustainable Development Goals
The use of cryptocurrencies by Russian businesses to circumvent sanctions exacerbates existing economic inequalities, both within Russia and globally. Sanctions disproportionately impact ordinary citizens while those with resources can exploit loopholes, widening the gap between the rich and the poor. The creation of alternative financial systems, like the A7A5 stablecoin, further entrenches this inequality by benefiting those with access to these unregulated channels.