(Kitco News) China has dramatically increased its gold purchases from Russia under a Western ban on Russian gold following its invasion of Ukraine.
China imported $108.8 million worth of Russian gold in July. That’s a 750% jump from the previous month’s total of $12.7 million and a 4,800% increase from the $2.2 million reported in the same month a year ago. Russian media outlet RBC reported citing Chinese customs data. The data listed included forms of raw and semi-finished gold.
Further purchases from China come after the United States, Britain, Canada, Japan, the EU and Switzerland banned Russian gold exports following the invasion of China. Ukraine by Russia.
Earlier in August, it was reported that Russia was reviewing its own international standard for precious metals after being banned by the London Bullion Market Association (LBMA). And it could have a fixed price in national currencies.
The country’s finance ministry said it was “essential” to create the new Moscow World Standard (MWS) to “standardize the functioning of the precious metals industry” and have an alternative to the LBMA.
Following Russia’s invasion of Ukraine, the LBMA also suspended its accreditation of Russian refiners of precious metals, prohibiting them from selling new products in London. The suspension was made official on March 7.
According to the Ministry of Finance, Russia was the second largest producer of gold by volume in 2021, with gold production up 9% to 343 tonnes. The precious metals industry in Russia is worth around $25 billion a year.
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