Russia will resort to cryptocurrencies to save its economy

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Western sanctions against Moscow over its invasion of Ukraine ban the import of many products into Russia.

Russia will resort to cryptocurrencies to save its economy.

Moscow plans to legalize cryptocurrencies next year, according to sources in the State Duma – with the main aim of softening the impact of Western sanctions.

“In international payments, (cryptocurrency) can be used well,” Anatoly Akshakov, head of the State Duma’s economic affairs committee, said today, according to the Kommersant newspaper.

This is a legal guarantee of their use to ensure “parallel importation”. Parallel importation is the term used by the Russian authorities to describe the importation of goods without the express permission of the manufacturers.

To date, the use of cryptocurrencies is prohibited in Russia. For years, the central bank has remained very skeptical of their use. In September, however, the prime minister Michael Mishustin showed a change in attitude. The competent authorities will agree on a single position by the end of the year, he had announced.

Western sanctions against Moscow over its invasion of Ukraine are prohibitive the import of many products into Russia. In addition to military hardware, the sanctions mainly concern high-tech products and components for the electronics industry, such as semiconductors, but also machinery and equipment.

Russia is trying to obtain some of these products from other countries that have not imposed sanctions on it.

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