Russia to open crypto payments for international trade to skirt sanctions
Russia’s Central Bank has announced that local businesses will be allowed to use cryptocurrencies for international trade, as Moscow tries to find ways around Western sanctions that have stymied payments for both imports and exports.
In addition, the State Duma has adopted a new law permitting foreign banks to establish branches in Russia, instead of just subsidiaries.
‘Russian exporters and importers will be allowed to use cryptocurrencies in cross-border settlements under foreign trade agreements, but only within the experimental legal regime (ELR),’ which is being tried out, the bank said in a press release, 30 July.
‘By law, the ELR programme will be approved by the Bank of Russia in agreement with interested institutions. It is assumed that the ELR will provide for a special procedure for settlements in cryptocurrencies, and the number of participants and its duration will be limited,’ it added.
The bank also noted that the State Duma had approved a new law, 30 July, whereby, ‘Foreign banks will be allowed to set up their branches in the Russian Federation, while at present they can establish only subsidiary banks or representative offices.’
It explained: ‘Such branches will be authorised to open and service bank accounts for legal entities; transfer funds on behalf of legal entities, including correspondent banks; collect cash, promissory notes, payment and settlement documents; and provide cash services to legal entities. In addition, they will be able to issue guarantees and sureties, lease special premises, safety deposit boxes for storing documents and valuables, conduct leasing transactions, and provide advisory and information services.’
The Central Bank will supervise the operations of foreign banks’ branches, with the law due to take effect on 1 September of this year.
