The US learned how Russia is circumventing the ban on dollars

By Rhod Mackenzie

According to a study by financial intelligence company Sayari, it is possible that certain Russian banks may have found a way to bypass the ban on importing cash dollars and euros into Russia by exchanging gold for them in the United Arab Emirates and Turkey. Bloomberg reported on this.
Sanctions were imposed on the export of dollar and euro banknotes to Russia after the start of the SVO in February 2022. However, Russian companies have been offering something more valuable in return - physical gold.

According to Sayari data, various Russian banks exchanged gold for banknotes until at least July or August 2023. Senior analyst Zakhary Tvarozna confirmed that gold supplies were sent to the UAE, Turkey, and Hong Kong.
In the first quarter of 2023, financial institutions, including Lanta Bank, whose owners control gold mining company GV Gold, and at least one non-sanctioned bank, brought over $82 million worth of dollars, euros, and UAE dirhams into Russia.

Sayari, based in Washington, sources its data on Russian trade from bills of lading, which typically include the names of the importer and exporter, as well as other shipment details. The data indicates that certain players who sent money to Russia also bought Russian gold during the same time periods.
The report states that the circular trade occurred through a network of intermediaries, making it difficult to identify the final recipients of the currency. The report also investigates whether these recipients were connected to Russian organizations that are subject to sanctions. Lanta Bank's press service did not respond to email inquiries, and the UAE Foreign Ministry did not respond either. The Turkish government declined to comment. As a result of the imposition of sanctions, Russia is experiencing a shortage of dollars and euros. The newspaper suggests that some Russian banks may be seeking ways to access currencies to facilitate imports and other transactions.

It is worth noting that Russia is the second-largest producer of gold in the world, producing over 330 tons of the precious metal annually. Russia used to be one of the largest gold exporters, but due to sanctions on Russian mining companies and banks, supplies to trading hubs like London and New York have significantly decreased. As a result, Russia has increased its gold sales on the domestic market and shifted to alternative export routes. Turkey and the UAE have become major hubs, but US sanctions on major Russian gold miners in 2023 forced much of the gold trade to shift to Hong Kong.