Russian Logistics Firm ETE Group Seeks Crypto Regulation for International Trade

ETE Group, a prominent Russian logistics firm, has formally requested the Russian government to establish a regulatory framework for the use of cryptocurrencies in international trade transactions. The company, which is based in Moscow and Vladivostok, has called on Prime Minister Mikhail Mishustin to develop guidelines that would allow domestic firms to utilize digital currencies, including cryptocurrencies, for settlements with foreign suppliers.

ETE Group has specifically asked for amendments to the Russian Civil and Tax Codes, as well as other regulatory legal acts, including the federal law governing currency control. The firm aims to create a legal status for cryptoassets and establish formal protocols for their issuance, circulation, and accounting. Additionally, ETE Group has called for the clarification of regulations pertaining to crypto exchanges and the designation of a state body to control crypto transactions.

The company highlighted that the interest in making crypto payments abroad has significantly increased, particularly due to the challenges posed by international sanctions. Since the outbreak of the war in Ukraine in February 2022, Russian companies have faced restrictions from the US, the EU, and the UK, which have imposed sanctions and disconnected Russian trading companies and banks from the SWIFT network. This has led to a growing interest in using cryptocurrencies as a payment tool to circumvent these restrictions.

ETE Group noted that while Russian companies are technically allowed to make international payments in cryptocurrency through the Central Bank’s sandbox program, the lack of a clear regulatory framework poses risks for businesses. The firm emphasized that crypto payments can help domestic firms solve problems related to foreign payments, especially in the context of ongoing sanctions.

The company also pointed out that payments between firms in Russia and China often face delays, ranging from five days to several months, due to the inclusion of Chinese banks in America’s sanctions regime scrutiny. Similar situations are frequent in trade deals between Russia and Kazakhstan, where payments can take at least two to three weeks to complete, depending on various factors. ETE Group explained that the slightest suspicion of a payer’s connection with Russia can lead to the refusal of credit institutions to process the payment, further complicating the process.

ETE Group’s request comes at a time when the EU is drafting its 17th sanctions package against Russia, and Washington is discussing additional sanctions pressure. This has prompted more Russian companies to seek dollar-free trade options. The firm’s call for a regulatory framework for crypto payments reflects the broader trend of Russian businesses exploring alternative payment methods to navigate the challenges posed by international sanctions.