Russia Accused of Selling Gold on Black Market
May 15, 22
(IDEX Online) - Russia stands accused of selling party of its huge $140bn stockpile of gold on the black market, as it seeks to evade sanctions imposed by the US, EU and UK (the world's biggest gold-importing nation).
The Switzerland-based Global Initiative Against Transnational Organized Crime says in a report that illicit gold markets and gold laundering are compelling options for Moscow, as it finds itself increasingly cut off from foreign currency and financial systems.
Russia supplies around a tenth of the world's gold - in normal times. The World Gold Council estimates it has reserves worth $140bn, and analysts in the jewelry sector believe it holds a similar value of diamonds, according to the Wall Street Journal.
"The wheels of the global illicit gold market are well oiled," says the Global Initiative report, "and offer a variety of economic options to an increasingly beleaguered Moscow, along with other sanctioned actors.
"It is therefore critical to understand the potential for using criminal networks to move and launder gold to evade sanctions."
Members of the US Congress have been trying to make a "Stop Russian Gold Act" into law, prohibiting US citizens from dealing with foreign nationals who purchase or transact in Russian gold.