Ukraine Plans Sanctions to Block Russia’s Crypto Use in Trade

Ukraine has announced plans to impose sanctions and implement measures to curb Russia’s use of Bitcoin and other cryptocurrencies in international trade. These efforts follow reports that Russian companies have been using crypto to bypass Western sanctions.

Ukraine's Response to Russia’s Crypto Strategy

Ukrainian officials are actively developing strategies to block Russia from leveraging Bitcoin for cross-border payments. According to Ukrainska Pravda, Vladyslav Vlasiuk, an advisor to Ukraine’s president, confirmed that these measures have been under discussion since earlier this year. Ukraine has also informed its international allies about Russia’s use of crypto to evade sanctions.

In a statement, Vlasiuk emphasized,
"We were among the first to notify our partners about the enemy's plans during the summer. Now, sanctions and other mechanisms to prevent using cryptocurrencies for such transactions are being prepared."

Russia's Search for Sanction Workarounds

Russia has been exploring alternative solutions to sustain international trade amid severe sanctions. Russian companies have reportedly turned to stablecoins like Tether (USDT) for transactions with global partners, including Chinese clients. While these methods provide some relief, sources suggest that other approaches could expose Russian entities to risks, such as frozen overseas accounts, or result in slower processing times.

Legal Frameworks for Crypto Usage in Trade

In recent months, Russia has established legal guidelines for Bitcoin miners, which include allowing select companies to use cryptocurrencies for foreign trade. Finance Minister Anton Siluanov’s recent comments confirm that these practices are already in effect, further highlighting the country’s increasing reliance on digital currencies to navigate international sanctions.