How Is Russia using gold to avoid sanctions?

Russia is utilizing gold to get around sanctions put in place following its invasion of Ukraine, according to a red alert issued by the UK National Crime Agency (NCA) to the financial industry.

According to the NCA, concerted efforts are being made to launder gold that has been sanctioned in order to conceal its source, conceal it in supply chains, and sell it in the UK and other countries. Since July 2022, a growing number of Russian gold exports have gone to nations that do not impose sanctions on Russian gold.

After that, the gold can be refined, melted down, or recast to conceal its source. Consequently, 29 additional sanctions have been imposed by the UK on people and organizations that support and operate in Russia’s strategic, oil, and gold industries.

Among the people targeted is a network that is found in charge of sending Russia more than $300 million in gold profits. The Russian oligarchs Vladislav Sviblov and Konstantin Strukov, as well as two of Russia’s biggest gold producers, Nord Gold PLC and Highland Gold Mining Limited, have all been sanctioned by the UK.

It is worth mentioning that Recall that the European Union is about to start discussing a plan for the 12th set of sanctions against Russia, with the main objective being to outlaw Russian diamonds. Eleven sets of sanctions covering a wide range of industries and affecting 1,800 people and organisations have been in place since the Russian invasion of Ukraine in February 2022.

Despite prominent western jewellers refusing to purchase Russian stones, the EU has not imposed sanctions on the state-owned diamond miner Alrosa in Russia. At their meeting in Japan, the foreign ministers of the G7 gave the EU the all-clear to purchase diamonds. The EU is presently awaiting approval from the G7 to implement the diamond ban. In the next few days, the European Commission’s package proposal is anticipated to be approved, and then the Council’s adoption. Discussions among governments are expected to begin next week.