The Agricultural Bank of Russia is exploring the use of cryptocurrency-based solutions as a substitute for conventional payment methods in the export of more than 49.5 million tonnes of grain. This approach has the potential to introduce digital assets into the agricultural commodities market, setting a precedent for such applications.
Russia Considers Cryptocurrency Settlements for Grain Exports
Russia is showing a growing willingness to embrace cryptocurrency. The Russian Agricultural Bank, a government-owned entity that finances agricultural enterprises, has signaled the possible implementation of crypto for settling grain trade transactions.
At the Russian Grain Forum held in Sochi, which drew around 1,000 attendees, the bank’s First Deputy CEO, Irina Zhachkina, highlighted the potential use of cryptocurrency for grain settlements.
We believe cryptocurrencies can be a convenient alternative instrument and at the moment, we together with the Bank of Russia and all the stakeholders are considering the opportunity of using cryptocurrency tools for payments in grain trading.
She stated:
Since 2022, the Russian Agricultural Bank has been under sanctions imposed by both the European Union (EU) and the United States. These measures involved removing the bank from the SWIFT international payment system, freezing all its assets within the EU, and prohibiting access to financial services from European institutions. The Russian government has cited the removal of these sanctions as a key condition for concluding a proposed Black Sea agreement that would permit the secure transport of Ukrainian grain through shared territorial waters.
According to statements from the central bank, sanctions have extended to ships transporting Russian grain to foreign markets, with more than 79 vessels barred from accessing European ports or receiving related services.
The agricultural bank appears to be anticipating a possible escalation of these restrictions and is positioning cryptocurrency as a dependable alternative for ensuring liquidity in grain transactions.
This initiative could pave the way for cryptocurrency to enter the agricultural commodities market, positioning Russia as a key counterparty for digital asset-based settlements in the upcoming harvest. The forecast anticipates 49.5 million tonnes of grain exports, including 42 million tonnes of wheat, with Russia maintaining its status as the leading global producer of this grain.
