According to a top-ranking lawmaker, Russia is looking at accepting Bitcoin as a payment for exports of gas and oil.

Pavel Zavalny says "friendly" nations could be allowed to pay using crypto-currency or their local currency.

Last month, Russian President Vladimir Putin declared that he would like "unfriendly" nations to purchase its gasoline using the ruble.

The move could aim to boost the value of the Russian currency, which has lost more than 20% of its value this year.

Sanctions issued on the US, the UK, the US, and the European Union, following the invasion of Ukraine and the US invasion of Ukraine, have affected the rouble of Russia and made it more expensive to live.

But, Russia is still the world's largest natural gas and is also the second-largest oil producer.

Mr. Zavalny, who chairs the Russian State Duma committee on energy and energy, told reporters that Russia has been looking at different ways of receiving payments for energy exports.

He stated that China, as well as Turkey, were among the "friendly" nations that were "not directly involved in the pressure on sanctions."

"We have been discussing with China to change to settlements in the national currency for the yuan and roubles," said Mr. Zavalny. "With Turkey, it will be Lira and roubles."

Mr. Zavalny said: "You can also trade bitcoins."

'More risk'

Analysts believe that Russia could profit from accepting the wildly popular cryptocurrency despite the risk.

"Russia is feeling the effects of these unimaginable sanctions," said David Broadstock, a senior research fellow in the Energy Studies Institute in Singapore. "There is an urgent need to strengthen the economy, and in a variety of aspects, Bitcoin could be considered an asset with high growth potential."

He also noted that the price of Bitcoin has been soaring up to 30% in the last year. By contrast, the dollar has traded at five percent of the euro.

"Clearly accepting Bitcoin in comparison to other currencies that are traditional, creates significantly more risk to the natural gas trade," Mr. Broadstock said.

"Moreover One of the most important trade partners that are 'friendly' with Russia is China and cryptocurrency is prohibited to usage in China," he added. "This restricts the possibility of payments made using Bitcoin."

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There are some concerns that Russian Oligarchs may use virtual currencies to get around sanctions.

This has prompted Ukraine's government, US, and European politicians to demand crypto-currency companies to stop any Russian users.

However, many firms have rejected this idea.

"Some normal Russians are using cryptocurrency as a way to save themselves after their currency has been wiped out," said Brian Armstrong. He is the chief executive of the cryptocurrency company Coinbase.

He stated: "Many of them likely are opposed to what their country is doing A ban could be detrimental to them, too."

On Wednesday, Vladimir Putin's remarks about the need to make "unfriendly" nations pay roubles drove the currency up to three-week highs.

However, many existing gas contracts are negotiated in euros, and it's not clear what happens if Russia can modify the terms. The EU depends upon Russia for 40 percent in its energy needs.

Rajshahir Somoy/AZ