{"id":2920,"date":"2022-04-01T15:21:42","date_gmt":"2022-04-01T21:21:42","guid":{"rendered":"https:\/\/wpsites.ucalgary.ca\/isec-601-f21\/?p=2920"},"modified":"2022-04-01T22:55:58","modified_gmt":"2022-04-02T04:55:58","slug":"russia-accepts","status":"publish","type":"post","link":"https:\/\/wpsites.ucalgary.ca\/isec-601-f21\/2022\/04\/01\/russia-accepts\/","title":{"rendered":"Russia considers accepting Bitcoin for Oil and Gas"},"content":{"rendered":"\n
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Faced with stiffening sanctions from Western countries over its invasion of Ukraine, Russia is considering accepting bitcoin as payment for its oil and gas exports. <\/p>\n\n\n\n

In a news conference held last week, the head of Russia’s State Duma committee on energy, Pavel Zavalny said that when it comes to “friendly” nations such as China or Turkey, Russia is willing to be more flexible with payment options. Zavalny named China and Turkey as “friendly” countries because they are “not involved in the sanctions pressure” against Russia.<\/p>\n\n\n\n

“We have been proposing to China for a long time to switch settlements in national currencies for rubles and yuan,” he said according to a translated report. “With Turkey, it will be lira and rubles.”<\/p>\n\n\n\n

Zavalny added, “you can also trade bitcoins.” Bitcoin is a decentralized digital currency that is exchanged between two parties without involving banks or other financial institutions. <\/p>\n\n\n\n

The day before the news conference, Russian President Vladimir Putin said that his country will no longer sell gas to “unfriendly countries.” The ruble’s value has collapsed in response to the sanctions, which included the ejection of Russian banks from the SWIFT international payments system. <\/p>\n\n\n\n

“Unfriendly countries” refers to those that have imposed sanctions on Russia after the war against Ukraine. Some of the countries include: Canada, United States, Britain, South Korea, Norway, Singapore and Ukraine. <\/p>\n\n\n\n

The European Union relies heavily on Russia’s oil and gas shipments, further complicating efforts by Western nations to increase economic pressure on Russia over its invasion of Ukraine. The United States has implemented a ban on Russia’s oil and gas imports, even though they obtained a small amount of its energy needs on those shipments. <\/p>\n\n\n\n

Putin states, “if ‘unfriendly countries’ wants to buy Russian natural gas, they have to open ruble accounts in Russian banks. From these accounts, payments will be made for the gas delivered from Russian banks.” This announcement caused energy prices to spike earlier this week. <\/p>\n\n\n\n

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The move is likely to bolster the Russian currency which suffered in value and lost over 20 percent this year. Sanctions imposed by the United States, UK and other European allies, following the invasion of Ukraine, have put a strain on Russia’s rubles and raised its cost of living. <\/p>\n\n\n\n

What’s the risk?<\/h2>\n\n\n\n

Russia’s economy has been battered by the unprecedented sanctions, and needs to be shored up and “Bitcoin is seen as the highest growth asset” according to David Broadstock, a researcher at the Energy Studies Institute in Singapore. However, the value of Bitcoin has swung as much as 30 percent since the beginning of this year. Evidently, accepting Bitcoin, compared with other traditional currencies, increases risk in the trade of natural gas. <\/p>\n\n\n\n

Moreover, one of the “friendly” trade partners for Russia is China, however; cryptocurrency is currently banned for use in China. “This clearly limits potential for payment using Bitcoin” said Broadstock. There are concerns that Russian oligarchs could be using virtual currencies to avoid sanctions. This has spurred Ukraine’s government as well as the United States and European politicians to ask cryptocurrency platforms to ban all Russian users. But many firms have ruled this out.<\/p>\n\n\n\n

Sources:<\/p>\n\n\n\n

Russia proposes bitcoin for oil shipments to ‘friendly’ countries (nypost.com)<\/a><\/p>\n\n\n\n

What Is Bitcoin and How Does It Work? \u2013 Forbes Advisor INDIA<\/a><\/p>\n\n\n\n

Explained: Eclipse Attacks On Blockchains And How To Stop Them (cnbctv18.com)<\/a><\/p>\n\n\n\n

Putin says Russia will make ‘unfriendly’ countries pay for gas in rubles | CBC News<\/a><\/p>\n\n\n\n

putin_62319bebbd5a0.PNG (725\u00d7475) (indiatimes.in)<\/a><\/p>\n\n\n\n

russia bitcoin – Bing images<\/a><\/p>\n\n\n\n

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<\/p>\n","protected":false},"excerpt":{"rendered":"

Faced with stiffening sanctions from Western countries over its invasion of Ukraine, Russia is considering accepting bitcoin as payment for its oil and gas exports. In a news conference held last week, the head of Russia’s State Duma committee on energy, Pavel Zavalny said that when it comes to “friendly” nations such as China or … <\/p>\n

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