Swiss metal processing centers have increased imports of gold of Russian origin to record levels over the past two years, Bloomberg reports with reference to the Swiss Customs Administration.
Switzerland acquired as much as 5.7 tons of Russian gold worth $324 million in August, the agency said. Interestingly, Russian gold arrives in Switzerland from the UK, where it arrived from Russia before August 4. Prior to this date, sanctions on the import of gold from the Russian Federation had not come into force, and it was possible to import Russian gold.
Russian gold owners ship the metal it to Switzerland where it would be melted to subsequently simplify the process of its further sale.
The Russian origin of gold repels many buyers in Europe, even if it was mined in the country before the start of the special military operation in Ukraine. Officially, Russian gold can be sold in many trading centers, including London and Zurich.
Russia is world's second largest gold producer. It used to be the largest supplier of precious metals to the British market. Currently, Russia continues exporting its gold to China, but these exports are insignificant in comparison to the situation of the past. In August, they amounted to only 0.3 out of 182 tons that China acquired.
On July 20, the EU implemented a partial ban on gold imports from Russia. Imports of powdered gold, raw or semi-finished gold, as well as gold coins from Russia were banned. However, the restrictions did not affect gold bars or finished jewellery. Similar sanctions against Russian gold were also imposed by the United States and Switzerland.