BITCOIN prices soared after Russia said it could try to dodge sanctions by selling oil and gas in cryptocurrency.

       The digital money has shot up around five per cent since Putin's energy chief Pavel Zavalny said it could be used by friendly countries.

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       Russia could accept Bitcoin to dodge economic sanctions Credit: EPA 2

       Bitcoin rose by around five per cent since the announcement Credit: Rex

       He added they could use various currencies, such as the Turkish lira or Chinese yuan, depending on the buyer's preference.

       The move is an attempt by the Kremlin to boost Russia's currency, which has fallen 20 per cent in value this year, to avoid the West's economic sanctions.

       Mr Zavalny said on Thursday: "We have been proposing to China for a long time to switch to settlements in national currencies for roubles and yuan.

       "With Turkey, it will be lira and roubles. You can also trade bitcoins."

       The price of bitcoin has gone from around ￡32,576 on Thursday to around ￡34,156 on Sunday morning.

       Analyst David Broadstock, of the Energy Studies Institute in Singapore, said: "Russia is very quickly feeling the impact of unprecedented sanctions.

       "There is a need to shore up the economy and in many ways, Bitcoin is seen as a high growth asset."

       But bitcoin is currently banned for use in China, one of Russia's major "friendly" trading partners.

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       It is feared that Russian oligarchs are also using virtual currencies to avoid sanctions.

       Several crypto-currency platforms have ruled out calls from Ukrainian, US and European politicians to ban all Russian users.

       Earlier this month The Sun revealed that the US could target Russian cryptocurrency assets to pressure Vladimir Putin's troops to withdraw from Ukraine.

       Daniel Strachman, who has more than 20 years of experience on Wall Street, told The Sun: “It wouldn’t surprise me if Washington elites targeted crypto assets that they feel have an influence on Putin and get him to stop attacking Ukraine.”

       He warned that crypto could be used to evade punitive measures, adding “it’s simple to move money around when masked with a virtual private network".

       Daleep Singh, the Deputy National Security Adviser for International Economics, said any measures need to be “sustainable” and “work over time”, rather than only on their first day.

       Strachman said that the world is seeing a flight toward cryptocurrencies.

       He said: “Because of the political situation, people are going to a currency that has volatility and stability.

       “You can carry crystal cryptocurrency assets on your phone without having to worry about governments seizing assets or banks saying that they can’t release your money.”