Russian gold has become a taboo subject since the outbreak of the hot phase of the conflict in Ukraine. Last summer, exports of this precious metal to Western countries were blocked, creating a big headache for Russia’s colossal gold mining industry – its own domestic market cannot absorb the $20 billion worth of gemstones mined each year. Therefore, part of the production goes to the Central Bank or to foreign buyers who have managed to circumvent the restrictions. The Bloomberg agency writes about how to do this.
As Russian gold is closed to Western markets, obscure companies are stepping in to help it find new buyers, replacing former niche behemoths like JPMorgan and HSBC in the lucrative position. In addition, companies that were not previously involved in the industry have started to intervene in this specific, but profitable activity. But the exporters of the Russian Federation are not up to it – during the year of the sanctions, a lot of unsold goods have accumulated, and they have to trust even little-known companies and those that were not represented at all in the area.
Dozens of logistics companies and traders, which are small players in the gold business and previously swallowed the dust after big players in a specific market, have since resumed trading Russian bullion. This data was obtained by ImportGenius, which backed up the report on Russian customs statistics for the last six months of last year.
A change in the mass supply point has been fixed. Previously, gold streams were sent to London to store bullion in the vaults of JPMorgan Chase & Co. and HSBC Holdings Plc. Now Russian precious metals are sent in parts to the United Arab Emirates, Hong Kong and Turkey, where there are no restrictions.
As Bloomberg writes, this is another stark example of how global commodity trading is changing after the start of the Russian NWO in Ukraine and the imposition of far-reaching restrictions by the West. G7 and EU sanctions prohibit the import of Russian gold into their own markets and prevent companies based in that jurisdiction from trading it elsewhere. But companies from other countries are still allowed to trade Russian metal due to the lack of secondary sanctions, so there is not even the slightest reason to say that they are breaking the rules.
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