Russia may accept Bitcoin as oil and gas export payments from friendly countries

cnbctv18.com:

Faced with sanctions from the West for the invasion of Ukraine, Russia is considering allowing “friendly” countries such as China and Turkey to make payment for its oil and gas exports in Bitcoin.In a news conference on Thursday, the chair of state’s Duma committee on energy, Pavel Zavalny, said Russia was willing to be more flexible with payment options for friendly nations and could allow them to pay in the cryptocurrency or in local currencies, reports said.The proposal comes days after Russian President Vladimir Putin said countries that have imposed economic sanctions on Russia would have to buy gas with rubles.“Russia will continue, of course, to supply natural gas in accordance with volumes and prices ... fixed in previously concluded contracts,” Putin said earlier this week, adding that the change would only be on the mode of payment, which would be changed to rubles.The move is likely to bolster the Russian currency which suffered in value and lost over 20 percent this year, BBC reported.

Sanctions from the US and its allies in Europe weighed down the Russian currency and raised the cost of living, pushing up the cost of importing goods. The annual inflation in Russia rose 14.5 percent in the week ending March 18, the highest since 2015.Also read: Russia-Ukraine War: How the crisis could impact food supplies, trigger social and political unrestMeanwhile, Bitcoin was trading 4.5 percent higher at nearly $45,000 by midday on Friday, New York Post reported.According to analysts, despite the risks, Russia may benefit from accepting payments for energy exports in cryptocurrency.The Russian economy, which has been battered by sanctions, needs to be shored up and Bitcoin is seen as a high growth asset, David