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Hong Kong has emerged as a major gateway for Russian gold entering international markets, as Western sanctions have restricted Russian gold from traditional trading centres such as London and New York.
According to the Financial Times in a report published on 7 September 2026, citing Hong Kong trade data, the city imported nearly 100 tonnes of gold from Russia between January and July 2026, the highest volume on record and almost three times the amount recorded during the same period a year earlier. The total has already surpassed Hong Kong’s full-year imports of 92.1 tonnes in 2025, with five months still remaining in the year.
In 2021, before Russia’s invasion of Ukraine, Hong Kong imported just 3.3 tonnes of Russian gold. At the time, the United Kingdom accounted for approximately 80% of Russia’s gold exports.
By 2025, Hong Kong’s imports of Russian gold had reached 92.1 tonnes, valued at approximately US$10.5 billion, representing a 42% increase from the previous year. Since the beginning of 2022, Hong Kong-based companies have purchased Russian gold worth a cumulative HK$276 billion, equivalent to approximately US$35 billion.
The figures highlight a substantial shift in global gold trade flows following the introduction of Western sanctions against Russia.
After the United States and the United Kingdom imposed sanctions on Russian gold in 2022, Dubai initially became an alternative destination for Russian gold shipments.
In 2023, the United States sanctioned Polyus, Russia’s largest gold producer, further affecting the movement of Russian gold through international markets. Hong Kong subsequently became a key alternative to Dubai, emerging as a major route from late 2023 onwards.
More recently, tensions in the Middle East and their impact on transportation routes through Dubai have further strengthened Hong Kong’s role in the gold trade.
Neither Hong Kong nor mainland China has joined the Western sanctions against Russia. As a result, much of the Russian gold entering Hong Kong is subsequently transferred to mainland China, the world’s largest gold producer and consumer.
Debajit Saha, an analyst at the London Stock Exchange Group, explained that mainland China maintains strict gold import quotas. Chinese buyers therefore have an incentive to purchase and hold gold in Hong Kong, where import restrictions are less restrictive. As a result, Hong Kong’s share of China’s total gold imports rose to more than 20% last year.
Vita Spivak, an adviser at Gatehouse Advisory Partners, noted that Hong Kong is helping facilitate Russian transactions within a distinctive economic relationship in which Russia sells natural resources to China in exchange for economic support.
Hong Kong began piloting a new gold transaction clearing system in July 2026 as part of its efforts to strengthen its position in the regional gold market.
The city is also seeking to attract central banks to store their gold reserves in Hong Kong’s vaults, positioning itself to compete with Singapore as a leading gold trading and storage hub in Asia.
Hong Kong’s Financial Services and the Treasury Bureau has stated that participants in the new system must comply with anti-money laundering and counter-terrorist financing requirements. These safeguards are particularly relevant amid concerns that Russian gold could be mixed with gold originating from countries not subject to sanctions.
Analysts have warned that the growing volume of Russian gold passing through Hong Kong could expose Western banks, refineries and logistics companies operating in the city to compliance risks, including the potential threat of US secondary sanctions if their local counterparties are found to be involved in Russian gold transactions.
In 2024, the US Treasury Department sanctioned several Hong Kong-based entities over alleged links to Russian gold-related money-laundering networks. Among them was VPower Finance Security, a company providing cash-in-transit and precious metals transportation services.
The developments underline the importance of robust due diligence, supply chain transparency and sanctions compliance for businesses involved in the international gold trade.
The surge in Russian gold imports into Hong Kong reflects a significant realignment of global gold trade routes. As Western sanctions reshape traditional trading patterns, Hong Kong is becoming an increasingly important gateway for Russian gold, while mainland China remains a major destination.
For the international gold and jewellery industry, these developments highlight the growing importance of understanding trade flows, geopolitical risks and regulatory obligations across different markets.
Sources: Financial Times, The Standard (Hong Kong), United24 Media, The Deep Dive, Charter97, Jordan News and Crypto Briefing.
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