Peter Zion discusses how Russia is using gold to get around sanctions imposed by the Euro or the Dollar. They physically trade gold to pay for goods and services, and it is relatively easy for them to hide or smuggle. Russia is the world’s third-largest producer of gold, but the production statistics are a state secret. They also have a state reserve of gold bullion, which is a complete state secret. Furthermore, the Russians are accepting services for their paramilitary combat group funded by gold concessions. It is easy for them to divert a plane loaded with a few million to billion dollars worth of bullion and fly it to another country to pay for services. The only way to go after the gold trail is by targeting the international concessions themselves.

How Russia is Using Gold to Circumvent Sanctions

Introduction

In recent news, the Europeans have discovered new ways that Russians are using to avoid sanctions. In this article, we will explore how Russia is using gold to circumvent sanctions, a non-standard way of targeting.

Physical Trading in Gold

One of the most effective ways to get around sanctions that deal with either the Euro or the dollar is to physically trade in gold. This method involves physically flying gold to a location to pay for goods or services. This is the method that Russians are now adopting.

Similar Methods Used by Iran

The Russians are taking a page from the Iranians, who have been doing this for years. However, the Russians have an advantage in this regard since they are a larger country with a larger economy than Iran.

Russian Production of Gold

According to official statistics, Russia is the world’s third-largest producer of gold. However, the production statistics are a state secret, and there is no auditing. Therefore, it is undoubtedly much higher than the figures mentioned in official statistics. Additionally, Russia has a state reserve of gold bullion, which is also a complete state secret.

Russian Gold Concessions

Russia likes to accept concessions for their paramilitary combat group, Wagner, instead of cash payments. These gold concessions are also state secrets, and we do not have access to their data.

Why Gold is Easy to Smuggle

Gold is a dense metal, which makes it relatively easy to hide or smuggle. This is why it is a favored choice for countries like Russia to avoid sanctions.

Transportation of Bullion

Given that high-end stuff is already transported by air, it is easy for the Russians to load up a plane with bullion and fly it to places like China, Iran, or wherever else in order to pay for services. Additionally, most of the gold mines are in the least populated part of the country, northeastern Siberia, and are not on a road or rail network. Therefore, their bullion has to be flown to Moscow anyway.

Challenges Facing Those Who Want to Target the Gold Trail

There is no easy way to stop Russia from using gold to avoid sanctions unless efforts are made to target their international concessions, and this may come with several challenges.

Conclusion

In conclusion, even though Russia’s approach to avoid sanctions through the use of gold may seem fantastical, the fact remains that it is an effective method. This non-standard way of targeting is not easily overcome, and it makes us wonder what other measures countries may adopt to bypass sanctions in the future.