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American newspaper: Russia uses cryptocurrency to circumvent sanctions and speed up its military machine 0
(Dan Tri) – US media reported that Russia seems to use cryptocurrency to bypass Western sanctions to buy components to boost weapons production.
Inside a Russian weapons factory (Photo: Reuters).
The Wall Street Journal reported on April 1 that Russia is said to be using cryptocurrency to circumvent Western sanctions and buy weapons and drone parts.
After Russia launched its military campaign in Ukraine more than 25 months ago, the West rushed to impose sanctions on Moscow to pressure the country to stop the war.
The Wall Street Journal quoted sources saying that Russian intermediaries used the Tether cryptocurrency, which can be converted into USD, to buy weapons.
The American newspaper said that Tether has become an `integral` part of Russia’s military machine because traders of this currency can be relatively anonymous, in contrast to conventional banks.
The Wall Street Journal reported that importers often `transfer payments in rubles to Russian bank accounts run by intermediaries, who convert the rubles into Tether and make payments in local currency to suppliers.`
An intermediary told the Wall Street Journal that the man had made an order for a Russian business, a subsidiary of the Kalashnikov group, which he declined to name.
According to the order accessed by the American newspaper, there are `248 types of electronic components, including versions of the STM32 microcontroller, manufactured by a Swiss semiconductor manufacturer`.
Previously, Ukraine announced that it had found STM32 in Lancet drones produced by Zala Aero, a subsidiary of Kalashnikov.
The American newspaper said the goods were paid for with Tether, shipped from Hong Kong through Central Asia and then to Russia.
Many electronic components of drones are classified as dual-use goods, meaning they can be used for military and civilian purposes.
In the war of attrition with Ukraine, Russia has an overwhelming advantage in military potential.
According to assessments by experts in the West, Russia’s weapons production has increased significantly, exceeding the level before 2022 despite having to endure thousands of sanctions imposed by the West.
In December 2023, Russian Prime Minister Mikhail Mishustin revealed that the country had increased weapons production many times over the past year, ready for the protracted war in Ukraine.
Earlier this year, Russian Deputy Defense Minister Alexey Krivoruchko said that the country’s Armed Forces would receive more than 36,000 pieces of military equipment and 16.5 million weapons this year.