Russian companies turning to netting, gold, and crypto for international payments to bypass U.S. sanctions

Russian companies are utilizing netting, gold, and cryptocurrency for international payments, according to Russia’s financial watchdog. The use of these alternative methods has increased due to U.S. sanctions, with a shift in focus to the Middle East and Asia. High-ranking officials are discussing these methods publicly for the first time.

Netting involves balancing export and import payments through verified agents. Major Russian banks have implemented netting systems for transactions with China. President Putin was briefed on the process, showing interest in understanding how it works and how payments are monitored. Gold is also being used in cross-border transactions, but regulation is needed to prevent arbitrage.

The finance ministry has noted an increase in gold being used in illegal transactions, prompting a call for a cap on the amount individuals can take out of the country. Additionally, a “Transparent Blockchain” system is being developed to monitor cryptocurrency transactions. These developments aim to enhance transparency and oversight in international payments.

Read more at Yahoo Finance: Russian firms use netting, gold and crypto in transborder payments, watchdog chief tells Putin