2023-05-25 07:04:07
Russian customs records show that the UAE has become a major trading center for Russian gold since Western sanctions imposed over the war in Ukraine cut off traditional export routes for Moscow.
What was mentioned in the records, which include details of regarding a thousand shipments of gold in the year that has elapsed since the start of the Ukrainian war, shows that the UAE imported 75.7 tons of Russian gold, worth $4.3 billion, up from only 1.3 tons in 2021, according to Archyde.com.
China and Turkey came following it in the largest destinations, as they imported regarding 20 tons each between February 24, 2022 and March 3, 2023. The three countries collectively received 99.8 percent of Russian gold exports, as evidenced by customs data for that period.
In the days following the start of the Ukrainian conflict, many multinational banks and companies providing logistics and refining services for precious metals refrained from dealing with Russian gold, which was usually shipped to London as a center for gold trade and storage.
The London Gold Bullion Market Association banned Russian manufactured gold as of March 7, 2022, and by the end of August Britain, the European Union, Switzerland, the United States, Canada and Japan banned imports of Russian gold.
But export records show that Russian gold producers quickly found new markets in countries that did not impose sanctions on Moscow, such as the United Arab Emirates, Turkey and China.
Louis Marshall, an expert on gold sources at the Organization for Economic Cooperation and Development, says that Russian gold can be liquefied and reconstituted, to then find its way to the markets of Europe and the United States by concealing its origin and source.
He explained, saying: “If the Russian gold comes, it can be re-cast at a local refiner and its source determined through a local bank or a local trader, and then sold in the market. Here lies the risk … For this reason, conducting due diligence examination is necessary for buyers who want to ensure that they do not violate penal systems.
On the other hand, the UAE Gold Bullion Market Committee said that the state operates by managing clear and robust operations to combat illegal goods, money laundering and dealing with sanctioned entities.
She added that the UAE will continue to trade in an open and fair manner with international partners, while adhering to all existing international norms as defined by the United Nations.
1685013041
#UAE #major #Russian #gold #influx #destination