The Russian newspaper "Viewpoint" published an article titled "China Begins Publicly Purchasing Russian Gold" on August 2, stating that China is making a large-scale purchase of Russian gold, replacing the UK as Russia's main buyer of gold. Since 2025, China's procurement policy has shifted from being secret to open. Behind this lies a profound change in financial sovereignty.
In June 2025, Hong Kong imported over $1 billion worth of gold from Russia, almost three times the same period last year. This data not only broke the monthly procurement record but also marked a sharp rise in Russia's position in Hong Kong's gold import market, ranking third globally, behind the UAE and mainland China.
Hong Kong serves as a "transit hub" for China's imports of gold from Russia, with gold bars transported from here to Shanghai's exchanges. The reason for going through Hong Kong is mainly to avoid U.S. secondary sanctions.
China Replaces the UK as One of Russia's Largest Gold Buyers
After Western countries imposed sanctions on Russia due to the Ukraine conflict, Russian gold was listed on the "purchase ban" list by the United States, the UK, and the EU. The once largest customer, the London market, closed its doors. However, Russia quickly shifted its export focus eastward. In the first half of 2025, it exported $2.9 billion worth of gold to Hong Kong, setting a new high of 13 years.
As a result, Russia jumped from the sixth-largest gold supplier to Hong Kong to the third. On one hand, Russia is urgently seeking foreign exchange sources to support international trade; on the other hand, China also has its own deep-level considerations.
"Secret Buyer" Moves into the Spotlight: China Shifts from Inconspicuous Procurement to Openness
As early as 2023, China's purchases of Russian gold reached an all-time high, but most were operated in an inconspicuous manner, with limited official data. According to the estimate of Russian analyst Dmitri Vishnevsky, the People's Bank of China purchased about 735 tons of gold that year, of which about two-thirds were not officially disclosed - nearly 13 times the published data.
In 2025, China changed its procurement strategy: gradually shifting from secrecy to openness. On one hand, because the internationalization of the RMB and the process of de-dollarization accelerated, it reduced China's concerns about U.S. sanctions; on the other hand, China is intentionally building a gold-based financial "safe haven."
Why Is Russian Gold Attractive to China?
The answer lies in the combination of price and strategic significance.
Due to Western sanctions, Russian gold carries a significant "discount" in the global market. Alexei Vyazovskiy, vice president of Russia's "Gold Payment" company, revealed that there is a discount of up to $20–50 per ounce for exports to the Middle East and China. At a time when prices are rising, this is an attractive arbitrage opportunity.
More importantly, these gold reserves are viewed by the Chinese government as a key tool for hedging against the risk of U.S. assets. Since 2022, China has gradually reduced its holdings of U.S. Treasury bonds, and in March this year, its holdings fell below $800 billion, dropping to the third position globally, after Japan and the United States. At the same time, China has increased its official gold reserves for eight consecutive months, reaching a total of 1.1 million ounces (about 34.2 tons).
"This is a lesson learned from Russia: U.S. assets can be frozen, but gold is the last financial insurance of a sovereign country," Vyazovskiy emphasized.
Behind the Rise of the Gold Industry: Russia's Dual Profit Mechanism
Western sanctions have not stopped the development of Russia's gold industry, but instead, due to the shift in export focus, it has regained growth momentum. In 2024, Russia's gold production increased by 5.3%, reaching 330 tons. Russia thus became the world's second-largest gold producer.
More importantly, since exports are priced in dollars while costs are paid in rubles, this industry has become a "win-win machine" for Russia's foreign exchange earnings. "When the ruble depreciates and gold prices rise, companies gain double profits," said Vyazovskiy.
Gold prices are also surging. In 2022, gold was still at $2,000 per ounce, and now it has surpassed $3,400, with expectations that it will soon reach $3,600–$3,700.
However, in the context of global central banks increasing their gold reserves, the Russian Central Bank has taken the opposite approach, stopping the purchase of domestic gold since 2022, a stark contrast to its previous policy of purchasing two-thirds of domestic gold annually (about 200 tons).
The Russian Central Bank explained that this move aims to curb inflation and enhance liquidity management capabilities. However, some experts hold a different view, arguing that in the face of geopolitical conflicts and financial decoupling risks, gold as hard currency reserves is more reliable than digital currencies or foreign exchange.
The Russian newspaper "Viewpoint" pointed out that the deepening of Sino-Russian gold transactions is not just a market behavior, but a deep linkage between the two countries in the context of the restructuring of the global financial system. China is using gold to "de-dollarianize," while Russia is using this to escape Western financial control. With the advancement of the RMB's internationalization, the increase in gold reserves, and the continuous shrinkage of U.S. assets, a silent yet powerful monetary battle is unfolding. And gold is the oldest yet still strong weapon in this battle.
Original: https://www.toutiao.com/article/7534168855757799962/
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