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Russian gold is entering Hong Kong at a record pace, illustrating how Western sanctions have redirected bullion that once moved toward London into China and other Asian markets. The shift has accelerated since Russia’s 2022 invasion of Ukraine closed major Western destinations to its producers.

Hong Kong imported 112.7 tonnes of gold originating in Russia during the first seven months of 2026, according to BullionVault’s analysis of Hong Kong Census and Statistics Department data. That was already above the 92.1 tonnes received during all of 2025.

The increase becomes even more striking when compared with the period before the invasion. Hong Kong imported only 3.3 tonnes of Russian gold in 2021, revealing how dramatically trade routes have changed since Western governments imposed restrictions.

Russian bullion represented almost 15% of Hong Kong’s nonmonetary gold imports during the first seven months of 2026. In 2021, Russian metal accounted for just 0.6% of those imports.

“Hong Kong has emerged as an important hub for Russia-China trade since the full-scale invasion,” said Vita Spivak, senior consultant at Gatehouse Advisory Partners. “Most gold goes to Mainland China as it hasn’t placed sanctions on Russian gold,” she told CNBC.

Spivak said Hong Kong provides benefits beyond the ability to work around sanctions. The city offers direct access to China, which the source identified as the world’s largest market for gold consumption.

The London Bullion Market Association suspended all six Russian gold and silver refiners from its Good Delivery lists in March 2022. The U.S., U.K. and other Western countries later placed restrictions on Russian gold, effectively shutting the metal out of markets that had been important destinations.

Before the war, Russia’s gold business had developed a heavy dependence on London. Russian gold exports to the U.K. from 2019 through 2021 were equivalent to about two thirds of the country’s mine production, according to BullionVault data.

Adrian Ash, director of research at BullionVault, said Hong Kong’s official figures show a steep increase in Russian gold imports. He connected those figures to the support and bilateral trade for which Russian President Vladimir Putin has repeatedly thanked Chinese President Xi Jinping.

“Russian exports of gold to the UK and other Western-sanction nations of course collapsed,” Ash said. Hong Kong consequently stands out as a natural alternative because of its established role in moving bullion into mainland China.

The city is also expanding its infrastructure for gold storage, clearing and trading. Rhona O’Connell, head of market analysis for EMEA and Asia at StoneX, described Hong Kong as an important entrepot for metal destined for China.

Shanghai has captured market share during recent years, according to O’Connell. She said Hong Kong is now competing with Singapore for supremacy as a bullion hub and is about six months ahead in infrastructure.

Hong Kong historically served as the main gateway for Chinese gold imports. Beijing has since authorized other import hubs, including Shenzhen and Beijing, reducing Hong Kong’s share, according to S&P Global.

The surge in Russian shipments is arriving while China is engaged in a wider gold buying spree. China has classified gold as a “strategic mineral” and promoted physical bullion to households as a store of value, while the People’s Bank of China has continued increasing its reserves.

S&P Global data showed China’s official gold holdings climbed by more than 40 tonnes during the first half of 2026. That was more than twice the amount purchased during the comparable period one year earlier.

Charles Chang, Greater China country lead for corporates at S&P Global Ratings, said both the People’s Bank of China and Chinese consumers have been buying substantial quantities of gold. He said consumers facing high uncertainty often seek to protect their savings and view gold as one way to do so.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.