{"text":[[{"start":9.32,"text":"Russian gold shipments to Hong Kong have surged this year as the Chinese territory becomes a top trading centre for bullion placed under sanctions by the west."}],[{"start":18.64,"text":"The shift comes at a time when Asian hubs are vying to control more of the global gold trade that has traditionally centred on London, New York and Dubai."}],[{"start":27.82,"text":"Hong Kong trade data shows that almost 100 tonnes of gold were imported from Russia during the first seven months of this year, a record level and nearly three times the amount imported during the same period in 2025."}],[{"start":40.92,"text":"“Since London closed its doors to Russian gold following the outbreak of the Ukraine conflict, Russian producers have increasingly redirected exports to eastern markets,” said Debajit Saha, analyst at the London Stock Exchange Group."}],[{"start":54,"text":"Russian gold exports to Hong Kong have been on the rise since 2022, when Moscow launched its full-scale invasion of Ukraine and the US and UK placed sanctions on Russian bullion. Hong Kong and China have no such restrictions."}],[{"start":67.72,"text":"At the same time, a growing number of global central banks are starting to repatriate gold stored in London and New York, including France and the Netherlands."}],[{"start":null,"text":"
"}],[{"start":77.12,"text":"China is the world’s largest producer and consumer of gold, and Hong Kong has been positioning itself as a key bullion trading hub. The city began piloting a new gold clearing system in July."}],[{"start":88.64,"text":"Hong Kong’s role in facilitating Russian gold flows into China is a “consequence of the Russia-China economic relationship”, whereby Moscow sells resources to Beijing in exchange for economic support, said Vita Spivak, a consultant at UK-based geopolitical advisory firm Gatehouse."}],[{"start":106.44,"text":"Entities in Hong Kong have bought Russian bullion worth about HK$276bn (US$35bn) since the start of 2022."}],[{"start":116.38,"text":"Most gold that enters Hong Kong eventually goes on to mainland China, with the city’s share of China’s total gold imports rising sharply in the past two years."}],[{"start":125.16,"text":"Because mainland China imposes quotas on gold imports, Chinese buyers frequently purchase bullion and hold it in Hong Kong, which has no restrictions on imports, said LSEG’s Saha."}],[{"start":null,"text":""}],[{"start":136.04,"text":"Russia is the world’s second-largest gold producer after China, and Moscow has increasingly relied on commodity exports, particularly to China, to prop up its wartime economy."}],[{"start":145.8,"text":"The Middle East conflict is further enhancing Hong Kong’s role as a clearing centre for gold from Russia, in part due to logistics disruptions in Dubai."}],[{"start":154.04,"text":"In 2024 the US Treasury placed sanctions on several Hong Kong entities over their role in a gold laundering network involving Russia."}],[{"start":162.68,"text":"Along with Singapore, Hong Kong has positioned itself as a trading hub for gold, and has also been working to woo central banks to store their gold in the city’s vaults."}],[{"start":172.56,"text":"Hong Kong’s role facilitating the gold trade between China and Russia fits into “ongoing efforts to enhance Hong Kong’s role as a regional financial centre with Chinese characteristics”, said Jeremy Mark, senior fellow at the Atlantic Council."}],[{"start":186.28,"text":"“Hong Kong has been a centre for gold trading for generations, and that ‘infrastructure’ can be used to China’s advantage,” he said."}],[{"start":193.44,"text":"In China there is enormous demand for gold from both retail investors and the central bank, which has substantially raised its bullion reserves."}],[{"start":201.42,"text":"However, analysts cautioned that the rising volumes of Russian gold in Hong Kong present a challenge for the city’s international financial industry, because they make it more complex for western banks and refineries to comply with overseas sanctions law."}],[{"start":214.96,"text":"“Western banks do face a real risk of inadvertent exposure,” said Tan Albayrak, a sanctions specialist at law firm Reed Smith. “If the transaction chain involves a sanctioned producer, there would be exposure for indirectly dealing with that sanctioned producer.”"}],[{"start":229.96,"text":"Asked about the risk of Russian gold commingling with that of unsanctioned countries, Hong Kong’s Financial Services and the Treasury Bureau told the FT that participants in its new clearing system would be “subject to the relevant anti-money laundering and counter-financing of terrorism regulations”."}],[{"start":245.52,"text":"The Hong Kong Gold Exchange and US Treasury did not respond to requests for comment."}],[{"start":252.82,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1788748492_4275.mp3"}