Factbox-Western ban on Russian gold imports is largely symbolic

MOSCOW (Reuters) – A transfer by Britain, the US, Japan and Canada to ban new imports of Russian gold is being seen as largely symbolic throughout the world gold market as Russian exports to the West have already dried up.

Britain mentioned on Sunday the ban was supposed to restrict Russia’s means to fund its navy operation in Ukraine.

It was not clear whether or not there was a consensus throughout the Group of Seven rich democracies on the plan, with European Council President Charles Michel and German Chancellor Olaf Scholz saying it wanted to be mentioned additional.

Gold costs have been up 0.5% at round $1,835 an oz on Monday.

HOW MUCH GOLD DOES RUSSIA PRODUCE?

Russia is without doubt one of the world’s largest producers of gold, together with China and Australia.

Final 12 months, it mined 314 tonnes of gold, in keeping with the Russian finance ministry, accounting for practically 10% of the metallic dug up globally. That gold is value round $19 billion at present costs.

Polyus is the nation’s largest gold producer, adopted by Polymetal.

WHERE DID RUSSIAN GOLD EXPORTS GO BEFORE THE CONFLICT?

Russian gold miners primarily bought their gold to Russian business banks, which generally both bought to the Russian central financial institution or exported it.

In recent times, the overwhelming majority of Russia’s gold was despatched to Britain, the world’s greatest bullion commerce and storage centre.

Britain imported $15.2 billion value of Russian gold final 12 months, UK customs knowledge present. From there, it may be re-exported to different markets.

Russia additionally despatched some gold lately to international locations together with Switzerland, Turkey and Kazakhstan, in keeping with Russian customs knowledge.

WHAT HAPPENED AFTER RUSSIA SENT TROOPS INTO UKRAINE?

Since Feb. 24, Russian gold exports to the West have largely stopped.

Western governments sanctioned Russia’s predominant gold-trading banks, together with VTB, Otkritie, and Sberbank, and plenty of worldwide banks, refiners and shippers stopped coping with Russian bullion.

On March 7, the London Bullion Market Affiliation (LBMA) suspended its accreditation of Russian treasured metals refiners, barring them from promoting new manufacturing in London.

Britain imported 29 tonnes of gold value $1.7 billion from Russia in February, UK customs knowledge on the U.N. Comtrade database present. In March, the final month for which knowledge was obtainable, Britain imported simply 26 kilograms from Russia.

WHERE DOES RUSSIAN GOLD GO NOW?

Russia’s customs service and central financial institution have suspended publication of import and export knowledge and details about state gold holdings.

Consumers for Russia’s gold now embody the nation’s central financial institution, folks inside Russia who desire a secure funding and consumers in Asia, the place most international locations haven’t sanctioned Russia, Russian miners, bankers and analysts say.

“[Russia’s] gold exports have already been rerouted for the reason that begin of the conflict, flowing eastwards moderately than westwards, reflecting self-sanctioning from Western world gold market individuals,” mentioned Julius Baer analyst Carsten Menke.

“The implications of a ban on the gold market are seemingly very restricted,” he mentioned.

(Reporting by Reuters; Modifying by Mark Potter)