{"id":1564,"date":"2023-05-02T20:58:08","date_gmt":"2023-05-02T18:58:08","guid":{"rendered":"https:\/\/www.dhcab.com\/?p=1564"},"modified":"2023-05-02T20:58:08","modified_gmt":"2023-05-02T18:58:08","slug":"russian-gold-is-in-hands-of-obscure-firms-as-jpmorgan-hsbc-exit","status":"publish","type":"post","link":"https:\/\/www.dhcab.com\/?p=1564","title":{"rendered":"Russian Gold Is in Hands of Obscure Firms as JPMorgan, HSBC Exit"},"content":{"rendered":"
\n
\n
Some little-known firms are taking over Russian bullion trade<\/p>\n

Imports banned in G-7 and EU nations, but allowed elsewhere<\/p>\n

By Eddie Spence<\/p>\n

May 2, 2023 at 6:40 PM GMT+4<\/p>\n

With Russian gold shut out of Western markets, little-known companies are stepping in to help the country\u2019s bullion find new buyers.\u00a0
Russian bars became taboo after the invasion of Ukraine, and were blocked by Group of Seven nations and European Union\u00a0import bans\u00a0last summer. That created a big headache for Russia\u2019s huge gold industry \u2014 its own market can\u2019t absorb the $20 billion of metal mined each year, leaving the central bank or foreign buyers to take the rest.
Dozens of logistics firms and merchants that are small players in the gold sector have since taken over the Russian bullion trade, according to data from trade-tracking firm\u00a0ImportGenius\u00a0based on Russian customs figures for six months through August. And instead of massive shipments going to London to sit in vaults of top bullion banks like\u00a0JPMorgan Chase & Co.\u00a0and\u00a0HSBC Holdings Plc, Russian supplies are heading piecemeal to places like the United Arab Emirates, Hong Kong and Turkey, where there are no restrictions.<\/p>\n

It\u2019s another example of how the global commodities trade is being\u00a0rerouted\u00a0in the wake of Russia\u2019s war in Ukraine. G-7 and EU sanctions ban the import of Russian gold in their own markets and prohibit companies based in them trading it elsewhere. But firms in other countries are still allowed to deal in Russian metal due to the lack of secondary sanctions, so there\u2019s no suggestion any rules are being broken.<\/p>\n

Russia and Iran Are Building a Trade Route That Defies Sanctions
The global transport of precious metals is dominated by security companies like\u00a0Brink\u2019s Co.\u00a0and Loomis, which stopped carrying Russian bullion after the war began.
The gap left has been filled by companies like\u00a0VPower Finance Security (Hong Kong) Ltd., which says it moves cash and gold for some of China\u2019s biggest banks. It handled more than $300 million of Russian gold shipments through Hong Kong in March through August 2022, ImportGenius data show.
It\u2019s a fraction of the $1.2 billion of Russian gold delivered to JPMorgan in the first two months of 2022 alone, highlighting the challenge of selling big volumes immediately after the war began. But the new sales channels are helping, and miners\u00a0Polymetal International Plc\u00a0and\u00a0Polyus PJSC\u00a0have been able to draw down unsold stockpiles they built in the first half of 2022.<\/div>\n<\/div>\n

\"\"<\/a>
\n\"\"<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Some little-known firms are taking over Russian bullion trade Imports banned in G-7 and EU nations, but allowed elsewhere By Eddie Spence May 2, 2023 at 6:40 PM GMT+4 With Russian gold shut out of Western markets, little-known companies are stepping in to help the country\u2019s bullion find new buyers.\u00a0Russian bars became taboo after the […]<\/p>\n","protected":false},"author":1,"featured_media":1565,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[],"class_list":["post-1564","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-issues"],"_links":{"self":[{"href":"https:\/\/www.dhcab.com\/index.php?rest_route=\/wp\/v2\/posts\/1564","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.dhcab.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.dhcab.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.dhcab.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.dhcab.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1564"}],"version-history":[{"count":0,"href":"https:\/\/www.dhcab.com\/index.php?rest_route=\/wp\/v2\/posts\/1564\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.dhcab.com\/index.php?rest_route=\/wp\/v2\/media\/1565"}],"wp:attachment":[{"href":"https:\/\/www.dhcab.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.dhcab.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.dhcab.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}