GFN – HONG KONG: Hong Kong imported nearly 100 tonnes of Russian gold during the first seven months of the year, setting a record as Western sanctions accelerate the movement of bullion away from traditional trading centers in London and New York.

According to FT reporting by William Sandlund and Haohsiang Ko, shipments were nearly three times the volume recorded during the same period in 2025. Hong Kong entities have purchased approximately HK$276 billion, or US$35 billion, of Russian bullion since the beginning of 2022.

Russian exports to the territory have risen steadily since the United States and United Kingdom imposed sanctions on Russian gold following Moscow’s invasion of Ukraine. Hong Kong and mainland China have not adopted equivalent restrictions.

“Since London closed its doors to Russian gold following the outbreak of the Ukraine conflict, Russian producers have increasingly redirected exports to eastern markets,” LSEG analyst Debajit Saha said.

Most of the bullion entering Hong Kong ultimately moves into mainland China or remains stored in the territory because Chinese import quotas limit direct purchases. The surge coincides with Hong Kong’s effort to become a larger international bullion center, including the launch of a pilot gold-clearing system in July.

Hong Kong’s role in facilitating these flows reflects the broader economic relationship between Russia and China, according to Vita Spivak, a consultant at UK-based geopolitical advisory firm Gatehouse. Under that relationship, Moscow supplies resources to Beijing in exchange for economic support.

The growing trade also presents sanctions risks. Western banks and refineries could face inadvertent exposure if Russian bullion is commingled with gold from unrestricted sources.

“If the transaction chain involves a sanctioned producer, there would be exposure for indirectly dealing with that sanctioned producer,” sanctions specialist Tan Albayrak said.