Hong Kong is emerging as a key player in the global gold market, with a significant portion of its gold imports now coming from Russia. In the first seven months of 2026, Hong Kong imported a record 112.7 tonnes of Russian gold, a sharp increase from 92.1 tonnes in all of 2025 and just 3.3 tonnes in 2021. This surge is attributed to sanctions imposed by Western nations after Russia's invasion of Ukraine, which have cut off the country's access to major gold markets.
Russian gold now accounts for nearly 15 percent of Hong Kong's non-monetary gold imports, up from just 0.6 percent in 2021. The London Bullion Market Association (LBMA) suspended all six Russian gold and silver refiners from its good delivery list, further restricting Russia's gold trade. Despite these sanctions, Russia remains the second-largest gold producer, with its mines yielding around 345 tonnes in 2025. The Russian central bank has also been selling its gold reserves to cope with economic pressures.
Most of the gold flowing into Hong Kong from Russia ultimately ends up in mainland China, which has not sanctioned Russian gold. Hong Kong's role as a gold hub is bolstered by its infrastructure and direct access to China, the world's largest gold consumer. This shift highlights the challenges of restricting the flow of physical assets like gold, which can always find a market. Meanwhile, Chinese investors and the central bank are increasing their gold holdings, driven by a desire to protect savings amid economic uncertainty.
The Russian central bank's strategic gold purchases over the past decade have proven valuable, as gold remains accessible despite sanctions. Before the war, Russia held half of its reserves in yuan and gold, demonstrating the long-term benefits of holding gold as a reserve asset free from counterparty risk. Hong Kong's evolving role in the gold market could challenge traditional Western gold hubs like London, marking a significant shift in global gold trade dynamics.