Russian banks circumvent ban on dollars and euros import, trading in gold – Bloomberg

Some Russian banks are likely trading gold in the UAE and Türkiye to avoid the ban on bringing dollars and euros into the country.

Source: Bloomberg 

Details: Bloomberg, citing Sayari data, indicates that various Russian creditors continued to supply gold in exchange for banknotes until at least July or August of last year. In addition, gold supplies appear to have spread to Hong Kong, the UAE and Türkiye.

It is noted that sanctions on the export of banknotes were imposed following Russia's invasion of Ukraine.

The tactic gained traction after the European Union and the United States imposed restrictions to limit Russia's access to Western currencies as part of sanctions imposed in response to its war against Ukraine, according to Sayari's research.

It is worth noting that the Russian Federation is the world's second-largest gold producer, producing more than 330 tonnes of precious metal per year. Previously, it was one of the largest exporters, but supplies to shopping malls in London and New York nearly ceased after sanctions were imposed on miners and creditors.

Since then, Russia has increased domestic sales and adopted alternative export routes. Türkiye and the UAE emerged as major hubs at the start of the war, but US sanctions against Russia's leading gold mining companies in 2023 forced a significant portion of trade to shift to Hong Kong.

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