Russian gold finds new route to China through Hong Kong as Western sanctions reshape trade

Russian gold is flowing into Hong Kong at an unprecedented pace as Western sanctions have redirected the country’s bullion exports away from London and towards China and other Asian markets, CNBC reported.

Hong Kong imported 112.7 tonnes of Russian-origin gold in the first seven months of 2026, according to BullionVault’s analysis of data from the Hong Kong Census and Statistics Department. The volume has already exceeded the 92.1 tonnes imported during the whole of 2025 and is sharply higher than the 3.3 tonnes recorded in 2021.

Russian gold accounted for nearly 15% of Hong Kong’s non-monetary gold imports during the first seven months of 2026, compared with just 0.6% in 2021.

The surge reflects a major shift in global bullion trade following Russia’s invasion of Ukraine in 2022. Western sanctions effectively shut Russian refiners out of several key markets, forcing producers to seek alternative destinations.

The London Bullion Market Association suspended all six Russian gold and silver refiners from its Good Delivery lists in March 2022. The US, UK and other Western countries subsequently imposed restrictions on Russian gold.

Before the war, London was a crucial destination for Russian bullion. Russian gold exports to the UK between 2019 and 2021 were equivalent to around two-thirds of the country’s mine production, according to BullionVault.

Hong Kong emerges as key gateway

Hong Kong has increasingly become an important link between Russian gold producers and the Chinese market. China has not imposed sanctions on Russian gold, while Hong Kong offers established bullion trading, storage and clearing infrastructure.

Vita Spivak, senior consultant at Gatehouse Advisory Partners, said Hong Kong had emerged as an important hub for Russia-China trade since the invasion.

“Most gold goes to Mainland China as it hasn’t placed sanctions on Russian gold,” Spivak said, adding that Hong Kong also provides direct access to the world’s largest gold-consuming market.

Rhona O’Connell, head of market analysis for EMEA and Asia at StoneX, said Hong Kong has historically been an important entrepot for gold entering China. The city is now competing with Singapore to strengthen its position as a major bullion hub.

China’s gold demand adds to the momentum

The surge in Russian gold flows comes as Chinese demand for bullion remains strong. China has designated gold as a strategic mineral and promoted physical bullion as a store of value for households. The People's Bank of China has also continued to add to its gold reserves.

S&P Global data showed that China’s official gold holdings increased by more than 40 tonnes in the first half of 2026, more than double the amount purchased during the same period a year earlier.

The combination of Western sanctions, Russia’s search for alternative markets and strong Chinese demand is therefore reshaping the global gold trade, with Hong Kong increasingly positioned at the centre of the changing bullion flows.