Hong Kong has taken several steps to elevate its status as a global gold hub this year, including the launch of a gold clearing and settlement system that mirrors the London Bullion Market Association. But to be a gold hub, you need a lot of gold. Hong Kong is getting plenty of the metal from Russia.
Hong Kong has become a conduit for Russian gold as sanctions have cut off Russia’s access to Western financial markets.
Hong Kong imported a record 112.7 tonnes of Russian gold through the first seven months of 2026. Hong Kong imported 92.1 tonnes of Russian gold through the entirety of 2025. That compares with just 3.3 tonnes in 2021, the year before Russia invaded Ukraine.
According to CNBC, Russian bullion accounted for nearly 15 percent of Hong Kong’s non-monetary gold imports in the first seven months of this year. That was up from just 0.6 percent in 2021.
The LBMA suspended all six Russian gold and silver refiners from its good delivery list after the invasion. The U.S. and its Western allies also imposed restrictions on Russian gold. As CNBC put it, this effectively closed off markets that had previously been major destinations for the country’s bullion.
And Russia has a lot of gold.
Russia was the second-largest gold producer in 2025, with Russian mines yielding around 345 tonnes of gold.
The Russian government has also been tapping into its existing gold reserves as it copes with sanctions and the drag of a wartime economy. The Russian central bank sold 56 tonnes of gold through August.
Gatehouse Advisory Partners senior consultant Vita Spivak said most of the gold flowing into Hong Kong from Russia ends up in mainland China, since it has not sanctioned Russian gold. But it’s not just about evading sanctions.
“For bullion specifically, Hong Kong also offers advantages beyond sanctions circumvention. It provides direct access to the world’s largest gold-consuming market.”
CNBC called Hong Kong a “natural alternative” for Russian gold.
“The city has long served as a gateway for bullion into mainland China, the world’s largest gold consumer, and it is rapidly expanding its storage, clearing and trading infrastructure.”
This is part of a broader movement of gold from the East to the West. Hong Kong’s evolution as a gold hub could quickly challenge London and other traditional Western gold hubs for dominance.
Meanwhile, Chinese investors are gobbling up gold, along with the country’s central bank. S&P Global Ratings Greater China country lead Charles Chang told CNBC, “Whether it’s the PBOC or if it’s the Chinese consumers, they’ve all been buying quite a bit of gold.”
“In times of high uncertainty, consumers tend to want to protect their savings, and they find gold as one vehicle for that.”
It’s certainly worked for the Russians.
The Bank of Russia launched a gold buying spree beginning in 2014. Over the next six years, the Russian central bank increased its reserves by around 40 million ounces (1,244 tonnes).
During this period, gold ranged from $1,100 to $1,500 an ounce.
When the war began, Russia held about half of its reserves in dollars, euros, and pound sterling. The other half was in yuan and gold, which remain accessible.
The Russians also made a shrewd move before they invaded Ukraine, transferring their National Welfare Fund holdings into yuan (60 percent) and gold (40 percent). A RAND Corporation study notes, “This was an indication that Russia was preparing for increased Western economic pressure. During the war, Russia has been using these funds to support the budget.”
Russia’s recent selling reveals just why central banks hold gold. It serves as a long-term reserve free from counterparty risk. And because its value is recognized globally, it can serve as an emergency fund – even if you’ve been locked out of the global dollar-dominated financial system.
Hong Kong’s role as a gold gateway underscores another important reality – while it’s relatively easy to restrict the flow of dollars or other fiat currencies, it’s much harder to stem the flow of gold. You can always find someone who wants it.
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