Hong Kong has emerged as a primary conduit for Russian gold exports following Western sanctions on Moscow, funneling record volumes of bullion into China, the Financial Times reported.
Gold shipments from Russia reached an unprecedented level of nearly 100 tonnes in the first seven months of the year, nearly tripling the volume recorded in the same period last year, the report cited Hong Kong’s trade data.
The surge has sharply boosted the city’s share of total Chinese gold imports to over 20 percent last year, underscoring the Asian financial center’s role as a key clearance hub for Sino-Russian bullion trade, the FT said.
Since Moscow launched its full-scale invasion of Ukraine in 2022, a coalition led by the United States and Britain has imposed sweeping economic sanctions on Moscow, including outright bans on imports of Russian gold. Russia is the world's second-largest gold producer behind China.
Neither China nor Hong Kong has joined the Western sanctions regime. As Western markets closed, eastern trade corridors became critical lifelines supporting Russia's wartime economy. Since early 2022, Hong Kong has imported HK$276 billion worth of Russian gold, the report said.
The escalating trade volumes carry mounting compliance hazards. Western banks, refiners, and logistics firms operating in Hong Kong could face secondary sanctions risks from Washington if their local counterparties handle Russian bullion, the report added.
