Venezuela To Purchase Automobile Parts From Russia Using Its Petro

Officials from Venezuela and Russia have consented to grow the economic cooperation between the two nations. The bilateral intergovernmental commission met throughout the end of the week in Venezuela’s capital. Talks covered distinctive parts of the “strategic partnership”. The two sides talked about joint projects in zones like energy, construction, and the military. The ministers have likewise discussed the utilization of Venezuela’s as of late issued digital currency in international transactions.

The South American nation uncovered plans to amass the Russian Kamaz trucks. Caracas intends to pay for the automobile parts in petro, Russian and local media detailed. The national digital currency will be utilized to buy components, tires, batteries and spare parts, as per the Venezuelan minister of foreign trade Jose Vielma Mora. “The cooperation includes payments with the petro,” Mora said, quoted by Agencia Venezolana de Noticias.

Venezuela and Russia want to expand the volume of their bilateral trade by 30 percent this year. The two sides have examined other key projects, including a union between the energy companies Rosneft and Petroleos de Venezuela. The economic relations will be extended in the midst of intensifying western sanctions imposed on the two countries.

The administration of President Nicolás Maduro launched the petro in February. Authorities in Caracas claim they have raised $735 million USD with the pre-sale of the government-issued digital currency. In excess of 200,000 orders from 133 nations have been set amid the 30-day time frame.

From March 23 the petro can be purchased with Russian rubles, Chinese yuan, Turkish lira and euro, and additionally with digital currencies like bitcoin. Maduro declared the creation of four exclusive economic zones where it will be acknowledged as a means of payment. Venezuelans will have the capacity to purchase houses and other property with the oil-backed crypto. Real estate deals in petro will be approved on April 20.

The utilization of digital currency to dodge sanctions has been talked about additionally in Russia. The previous summer the Central Bank reported aims to think about potential outcomes to emit a “virtual national currency”. However, decisions on the supposed “cryptoruble” have been postponed. In December, CBR’s Deputy President Olga Skorobogatova said that Russia would hold consultations with its accomplices from the EAEU and BRICS on creating a common digital coin for transactions between the member-states.

On Tuesday Skorobogatova confirmed that discussions are underway on the possible use of distributed ledger technologies to process transactions and transmit financial information within the Eurasian Economic Union. Armenia, Belarus, Kazakhstan, Kyrgyzstan and the Russian Federations are members of the organization. Belarus has become the first to legalize crypto-related activities, with Russia set to do the same by the summer.



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