Russia started exporting gold to the UAE instead of London

Russian gold exports continue despite ban

Russia sold 116 tonnes of gold to UAE, China and Turkey amid Western sanctions

London: America, Europe and NATO countries have imposed many economic sanctions on Russia in connection with the war on Ukraine, and the export of gold production in Russia has also been restricted. However, the United Arab Emirates (UAE) has now become a hub for Russian gold, as Russian crude oil is processed in India and China into refined petrol and diesel and sold in the American and European markets.

According to the data of the Russian customs department, 75.7 tons or 4.3 billion dollars of gold has been exported to the UAE in the Gulf through about 1000 shipments since the start of the war on Ukraine. In the entire year of 2021, Russia's export to UAE was only 1.3 tonnes. After this, China and Turkey have imported 20 tons of Russian gold. UAE, China and Turkey account for 99.8 percent of Russia's total gold exports.

In March 2022, the London Bullion Market Association, the world's largest gold trading hub and exchange, announced a ban on Russian gold. Before this, most of Russia's gold was sold in the London market. After London, the European Union, Switzerland, America, Canada and Japan also banned the purchase of Russian gold.

Market experts believe that Russian gold, like crude oil, can reach the US and European markets. Gold in the UAE can be melted down and re-sold in a new form from the UAE to America or London.

The American administration has offered that these three countries can enter the market of the Group of Seven nations freely if China, Turkey and the UAE implement the ban of other countries and stop the goods coming from Moscow. If this offer is accepted, it is expected that there will be more pressure on Russia's activity. Between February 2022 and March 2023, Russia has exported a total of 116.3 tons of gold. On the other hand, total gold production in Russia in calendar year 2022 was 325 tonnes. There is a possibility that the rest of the gold remained in the country or the government tried to cover up the truth by tampering with the export data.