Watan-The “Sayari” financial intelligence company issued a report revealing how some Russian banks circumvented sanctions and the imposed bans on shipping dollars and euros to the country by trading gold in the UAE and Turkey.
Gold is Russia’s second most important export after energy, and Moscow is the world’s second-largest producer of gold, producing more than 330 tons annually.
According to Bloomberg, the company stated that Russian financial entities such as “Lanta JSC Bank,” the owner of the gold mining company “GV Gold,” were responsible for this process.
Sources indicated that the mining company, along with at least one non-sanctioned lender, imported during the first quarter of 2023 approximately $82 million worth of euros, Emirati dirhams, and dollars.
Trade data confirms the involvement of the UAE and Turkey
To illustrate how Russia bypassed restrictions through a potential scheme of trading cash for gold, a team of analysts affiliated with the intelligence company conducted research using trade data.
The data included Russian trade bonds, importers’ and exporters’ names, and other shipment details.
According to the sources, many Russian entities resorted to shipping cash to Russia through gold in similar time frames via a network of intermediaries.
The report revealed that the data did not disclose the ultimate recipients of the currencies. “Zachary Tveroz,” one of the company’s senior analysts, clarified that the collected data indicated that many Russian lenders continued to ship gold for cash until at least July or August of last year.
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Hong Kong steps in!
The financial intelligence investigation by “Sayari” revealed that gold deliveries expanded to include Hong Kong, in addition to the UAE and Turkey.
Following the sanctions imposed on miners and lenders, Russian gold shipments to trading centers such as London and New York dwindled.
It is worth noting that the UAE has not yet imposed a ban on importing Russian gold, while Bloomberg previously reported a significant decline in shipment volumes.
The decline is attributed to what was described as “regulatory cleansing operations,” following the UAE’s addition to the watchlist by the Financial Action Task Force, a global anti-money laundering watchdog organization.