United Arab Emirates they became a trading center for Russian gold after the West cut off traditional Russian export channels. This follows from Russian customs data, which details the export of almost 1,000 gold items since the beginning of war in Ukraine. They show that the Emirates imported 75.7 tons of Russian gold worth $4.3 billion, compared to 1.3 tons in 2021.

They follow China And Türkiye, which imported about 20 tons each from February 24, 2022 to March 3, 2023. The three countries together account for 99.8% of Russian gold exports according to customs records. In the first days after the invasion of Ukraine, many multinational banks, logistics companies and precious metal processing companies stopped trading in Russian gold, which they usually exported to London, the traditional center of gold trading. From March 7, 2022, the London Gold Market Association banned the import of Russian bars, and at the end of August the EU, the UK, Switzerland, the USA, Canada and Japan did the same.

But relevant documents show that Russian gold producers have quickly found new markets in non-sanctioned countries such as the Emirates, Turkey and China. According to the Emirates Government Gold Committee, the state has clear and stringent procedures against illegal production, money laundering and any collaboration with any sanctioned entity.

In an effort to further isolate Russia, Washington has warned countries such as the Emirates and Turkey that they could be denied access to G7 markets if they cooperate with anyone subject to sanctions. The data reviewed by Reuters does not indicate any violation of sanctions by these countries. Customs records provided to Reuters by a trade representative show exports of 116.3 tons of Russian gold from February 24, 2022 to March 3, 2023. However, according to the estimates of the consulting company Metals Focus, in 2022 Russia produced 325 tons of gold. The rest of the gold either remained inside the country or was exported in transactions that do not appear in the customs records. It was not possible to establish what percentage of total Russian gold exports are covered by the figures.

However, it turned out that most of the Russian gold exports to China ended up in Hong Kong. China’s foreign ministry said the country’s cooperation with Russia “should not be subject to interference and obstruction by any third party.” The Turkish Ministry of Finance declined to answer relevant questions, as did the Russian authorities. For London, the disappearance of Russian exports is not a blow, since its trade is independent of Russia. In 2021, for example, Russian gold accounted for 29% of London imports, while in 2018 it was only 2%.

An executive at a company that exported large volumes of Russian gold to the Emirates told Reuters that Russian firms were selling gold to the Gulf states at a discount of about 1 percent compared to international markets. He, who insisted on anonymity, added that much of the gold exported to the Emirates was destined for refiners, who would melt it down and refine it to display it in another form.