Russia proposes cross-border cryptocurrency settlement with African nations

The Russian President of the Chamber of Commerce and Industry Sergei Katyrin has proposed a new cross-border cryptocurrency settlement for import-export payments, with the intention of boosting relations with African nations.

In a report by Russian news agency TASS, Sergei Katyrin sent a letter to Prime Minister Mikhail Mishustin that included a set of proposals for developing cooperation with African countries. 

“It seems appropriate to instruct the Ministry of Finance of the Russian Federation, together with the Central Bank, to ensure the conclusion of intergovernmental agreements with African states (as agreed) on the use of national currencies and cryptocurrencies in mutual settlements and payments. To work out the issue of establishing a specialized export-import bank, as well as a trust fund to support export activities of small and medium-sized businesses in African countries,” the letter noted. 

The President of the Chamber of Commerce and Industry also brought up the possibility of two industry and trade departments establishing trade missions in African states as well as creating free trade zones and encouraging investment.

Katyrin also stressed the impact of the “negative transformation of trade and economic relations on the part of the collective west” and how cooperation with other nations, in this case, African nations, “ is of particular importance for the future development of Russia”.

With large-scale sanctions being imposed upon Russia following their attack on Ukraine, Russia has faced increasing restrictions on their ability to trade internationally. 

Ukraine legalized cryptocurrency in March, and has received large donations from the crypto community after Ukrainian President Zelenskyy signed the Virtual Assets Bill. 

Russia has also moved to allow opening up cryptocurrency payments including BTC, for energy exports, with a proposal presented by Russian State Duma Deputy and Energy Committee Chairman Pavel Zavalny at a press conference at the end of March.

The recent recommendations by Russia’s commerce executive are an indication of Russia’s intention to continue to pursue cryptocurrencies,  turning to African nations to facilitate the continuation of international trade.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.