Russian gold shipments to Hong Kong have surged this year, making the Chinese territory an increasingly important trading hub for bullion subject to Western sanctions.

The shift comes as Asian financial centres seek to expand their role in the global gold trade, which has traditionally been dominated by London, New York and Dubai, The Caspian Post reports, citing the Financial Times.

Hong Kong trade data show that nearly 100 tonnes of gold were imported from Russia during the first seven months of this year. This is a record amount and almost three times the volume imported during the same period in 2025.

“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, an analyst at the London Stock Exchange Group.

Russian gold exports to Hong Kong have increased since 2022, when Moscow launched its full-scale invasion of Ukraine and the US and UK imposed sanctions on Russian bullion. Hong Kong and mainland China have not introduced similar restrictions.

At the same time, an increasing number of central banks are seeking to repatriate gold held in London and New York, including France and the Netherlands.

China is the world’s largest gold producer and consumer, while Hong Kong has been strengthening its position as a major bullion trading centre. The city began piloting a new gold-clearing system in July.

Entities in Hong Kong have purchased Russian bullion worth around HK$276 billion ($35 billion) since the beginning of 2022.

Most of the gold entering Hong Kong is eventually shipped to mainland China, with Hong Kong’s share of China’s total gold imports rising significantly over the past two years.

Russia is the world’s second-largest gold producer after China and has increasingly relied on commodity exports, particularly shipments to China, to support its wartime economy.

The conflict in the Middle East has further boosted Hong Kong’s role as a clearing centre for Russian gold, partly because of logistics disruptions in Dubai.

In 2024, the US Treasury imposed sanctions on several Hong Kong entities over their alleged involvement in a gold-laundering network linked to Russia.

Along with Singapore, Hong Kong has established itself as a gold trading hub and has also sought to attract central banks to store their gold in the city’s vaults.