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The FT reports that the significant rise in Russian gold exports to China occurs during a rivalry among Asian financial hubs for a larger portion of the global precious metal market, which has typically been dominated by London, New York, and Dubai. London Stock Exchange analyst Debajit Saha observed that, following the beginning of the conflict in Ukraine in 2022, Russia shifted its gold exports towards eastern markets, causing London to "shut its doors" to Russian precious metals. Since that time, the amount of gold from Russia to China has been rising.
The newspaper observed that the US and UK have enacted sanctions on Russian gold, whereas China and Hong Kong are free of such limitations. Simultaneously, a growing number of central banks worldwide, such as those in France and the Netherlands, are starting to bring back precious metals held in London and New York, the newspaper reported.
The FT noted that from the start of 2022, companies in Hong Kong have acquired around HK$276 billion, or $35 billion, worth of Russian gold, with the majority of the gold obtained from Russia eventually being sent to mainland China. As reported by the newspaper, Hong Kong's function as a clearing hub for Russian gold deals is rising as a result of the Middle East conflict, owing to logistical issues in Dubai.
source: ft.com
The newspaper observed that the US and UK have enacted sanctions on Russian gold, whereas China and Hong Kong are free of such limitations. Simultaneously, a growing number of central banks worldwide, such as those in France and the Netherlands, are starting to bring back precious metals held in London and New York, the newspaper reported.
The FT noted that from the start of 2022, companies in Hong Kong have acquired around HK$276 billion, or $35 billion, worth of Russian gold, with the majority of the gold obtained from Russia eventually being sent to mainland China. As reported by the newspaper, Hong Kong's function as a clearing hub for Russian gold deals is rising as a result of the Middle East conflict, owing to logistical issues in Dubai.
source: ft.com
