We have written several times about Venezuela’s Petro and how it was being developed. Now, it seems that Russia is planning to accept the Petro for some international transactions. The measure can be seen as a way to support the Venezuelan regime that has been several times sanctioned by western countries including the United States and the European Union (EU).
Russia May Support the Petro
One of the most important countries in the world, Russia, may start to accept the Petro for international transactions. At the moment, Russian and Venezuelan officials are discussing these issues in a meeting that is taking place in Caracas, Venezuela’s capital.
Apparently, there will be several topics discussed. Among them, Russia could cooperate with the South American country in several projects like railroads, food production, military cooperation, and adopting the Petro for some international transactions.
It is important to mark that Russia and Venezuela have been sanctioned by western countries for different reasons. Venezuela’s president, Nicolás Maduro, has imposed strict economic measures that increased the poverty rate in the country (over 90% of the population), reduced the value of its currency (lost 99% of its value in the last years), and produced other tragic consequences.
Russia has also been affected by international sanctions due to different reasons, including the annexation of Crimea some years ago. In the last days, diplomatic sanctions increased in solidarity with the United Kingdom, that expelled Russian diplomats from the country.
The Venezuelan minister of foreign trade, Jose Vielma Mora explained:
“The issues of cooperation include the purchases of automotive parts and components, of tires and batteries, as well as assembling of these vehicles in our country and the forms of payments, in which we include the payments with the use of Petro.”
Both countries are trying to avoid international sanctions by creating a cryptocurrency. Venezuela has been developing the petro and contacting different countries, to know whether they would like to accept the Petro as a means of payment in exchange for medicines and food or not.
Some reports explain that Russia has helped Venezuela to create this cryptocurrency to avoid international sanctions.
Russia Cryptocurrency Regulations
At CoinStaker we have written about the new regulations that Russia is implementing to the cryptocurrency and Initial Coin Offering (ICO) market. The eastern European country is trying to regulate ICOs but linking them with its national currency, the ruble.
With these regulations, ICOs will have to be registered in the Russian Federation, the companies will have to present 100 million rubles as initial capital, and the individuals that run the ICO will need a license.
At the moment there are no official announcements about the agreement reached between Russia and Venezuela.
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