Switzerland investigates gold imports from the UAE due to its collusion with Russia
Government officials in Switzerland launched an investigation on gold imports from the United Arab Emirates after accusing Abu Dhabi of colluding with Russia to evade international sanctions imposed on Moscow.
Switzerland has recorded a significant increase in gold imports from the UAE since the imposition of sanctions on Russia, according to a report published by the Geneva-based European Microscope for Middle East Issues.
That increase prompted the Swiss non-governmental organization for development cooperation, Swissaid, to be more transparent in determining whether this gold from the UAE originally came from Russia.
Swiss government agencies announced that an unexpected rise in the country’s imports of Russian gold would be subject to scrutiny as the leaders of the world’s wealthiest countries prepare to impose a ban on the import of the precious metal.
The G7’s focus on gold, Russia’s second most profitable export commodity after the energy sector, is the latest effort by Western countries to increase pressure on Moscow over its war on Ukraine.
Britain, Canada, Japan, and the United States had already complied with a ban designed to prevent members of the Russian oligarchy from using gold to circumvent sanctions.
Swiss purchases of Russian gold halted last March, shortly after Russia invaded Ukraine.
On March 7, the London Bullion Market Association announced the suspension of all six Russian gold and silver refineries from its ‘Good Delivery’ list, as sanctions against Moscow doubled.
This means that the international gold market will not accept any Russian gold bars after that date. Although Switzerland has followed suit, there are still some loopholes.
Almost all of the gold entered Switzerland in May was registered by customs for refining or processing, indicating that a Swiss refinery may have seized it.
However, the Swiss Association of Precious Metals Manufacturers and Traders maintains that none of its members has recently imported gold from Russia and that none of the country’s significant refineries has accepted any Russian precious metals.
“None of our members has received this gold,” said Christoph Wild, the association’s president and former CEO of Swiss gold refiner Argor-Heraus.
“If a Swiss refiner buys this gold, it will have to pay somehow,” he explained. But how can she do that when she knows that most Russian banks are subject to sanctions? So transferring money [to Russia] is not possible now.”
“Personally, I think the bullion is now in the vaults of Gotthard Mountain or something like that,” he says, referring to a region in Switzerland famous for its high-security vaults.
He adds: “Maybe it was brought to Switzerland by some very wealthy importers, and it is now stored in our country. It is still a mystery at the moment.”
The Swiss Association of Manufacturers and Traders of Precious Metals has 13 members, including four of the world’s largest gold refineries. Switzerland also hosts 23 licensed smelters for gold smelting.
“It is very difficult to know who is behind this business deal,” says Mark Ummel, head of raw materials at the NGO SwissAid.
In his opinion, such a large amount of gold makes the scenario for small players less likely. Swiss customs have so far refused to shed light on the issue, saying they cannot provide any information on gold importers for legal reasons.
