Russian bank RSHB and the Central Bank of Russia (CBR) are considering accepting cryptocurrency as payment for the country’s massive grain exports expected to approach 50 million tons this season.
According to a bank official, cryptocurrencies can serve as an alternative method for settlements in grain trade. Russia is a global leader in this market despite restrictions imposed over its invasion of Ukraine, another major grain exporter.
Sanctioned Russian agro bank mulls taking crypto for grain
Russian Agricultural Bank, also known as Rosselkhozbank (RSHB), has pitched the idea of accepting crypto payments for Russia’s wheat and other grain exports during a recent industry event held in the Black Sea resort town of Sochi.
This year’s edition of the Russian Grain Forum gathered hundreds of participants, from large producers and traders to representatives of Russia’s main commodities exchange and central bank.
During a business breakfast, First Deputy Chair of the RSHB Board Irina Zhachkina stated:
“We believe that cryptocurrencies can be a convenient alternative instrument, and at the moment, together with the Bank of Russia and all interested parties, we are working on the possibility of using cryptocurrency instruments for settlements in grain trading.”
Attendees emphasized the importance of cooperation between entities involved in the export of Russian grain in order to reduce logistics costs, especially in regard to niche crops where volumes are smaller, but margins are growing.
The opportunities presented by digital assets were also discussed. Russian companies have been reportedly using cryptocurrencies, stablecoins in particular, to circumvent Western sanctions punishing Moscow for its aggression against Ukraine.
While the war has caused disruptions in Ukrainian grain exports, Russia has managed to establish itself as a major producer and exporter despite restrictions that have limited both its trading capabilities and access to global finances.
The Russian Federation is expected to sell 49.5 million tonnes of grain abroad in the 2024-2025 agricultural year, according to a forecast presented by the head of the Rusagrotrans analytical center, Igor Pavensky, during a grain forum in Dubai this past February.
The total for the period between last June and July, this year, which includes around 42 million tonnes of wheat, may reach 52.6 million tonnes if legumes are added to the mix, the Interfax news agency reported at the time.
Rosselkhozbank is fully state-owned, with all of its shares controlled by the Federal Agency for State Property Management. It’s the sixth largest Russian bank, according to the Interfax-100 ranking for the first quarter of 2025.
RSHB has been placed under sanctions by both the European Union and the United States since 2022. As a result, the banking institution lost access to the international payment system SWIFT and its assets in the EU were frozen, Russian media reports recalled.
The sanctions also affected Russia’s ability to ship grain to foreign markets. As per the Rosselkhozbank’s own numbers, nearly 80 Russian cargo vessels have been banned from entering European ports, even for servicing purposes.
Russia drafting plan to launch BRICS grain exchange
Meanwhile, a high-ranking government official unveiled that the executive power in Moscow is currently developing a blueprint for the establishment of a grain exchange within BRICS, the intergovernmental organization viewed as posing a challenge to the West, of which Russia is a founding member.
Speaking during the same agribusiness forum in Sochi, Russia’s Deputy Prime Minister Dmitry Patrushev explained:
“International cooperation is an important instrument. As you are aware, BRICS countries backed Russia’s proposal to create their own grain exchange. The concept that will be presented to the partners is being elaborated at present at the government level.”
The initiative is aimed at strengthening food sovereignty of the association’s member states and lowering dependence on Western trading platforms, Patrushev was also quoted as stating by the official Russian Tass news agency.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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