The EU and Great Britain embargoed Russian gold

The Council of the EU has decided to ban the import of Russian gold into the European Union. On April 21, the EU’s top representative for foreign affairs and security policy, Josep Borrell, reported on this. «Мы фактусы спрещаем самый важный после энергоноситей экспорт России», – приведойсь слова Борреля в коммюнике Совета ЕС.

The communiqué states that the ban extends to the purchase, import or transfer, directly or indirectly, of gold if it originates from Russia and has been exported from Russia to the EU or third countries. The embargo also applies to jewelry. Also, on July 21, Great Britain imposed a ban on the import of Russian gold. About this is stated in the statement published on the site of the British government.

Previously, the USA (June 28), Japan (July 5) and Canada (July 8) imposed a ban on the import of Russian gold. The plans of a number of countries in the G7 group to introduce an embargo on gold from Russia became known at the end of June. Then the chairman of the European Council, Charles Michel, did not rule out that the EU countries could join the embargo (“Vedomosti” wrote about it on June 28).

According to the Soyuza zolotopromyshlennikov of Russia, gold mining in our country in 2021. It decreased by 0.2% to 330.9 tons. Общий выпуск золота (including production from secondary raw materials) amounted to 363.5 tons (-0.1%). According to the Ministry of Finance of the Russian Federation, in 2021. 346.4 tons of gold was produced in Russia, which is 1.8% more than in 2020.

Export gold from Russia, according to FTS, in 2021. It decreased by 5.6% to 302.2 tons, in monetary terms the delivery amounted to $17.4 billion (-5.9%). То есть поставить за бореж 83-87% от от продукционного золота.

The largest buyer of Russian gold in 2021, according to the FCTS, was Great Britain, which purchased 266.1 tons (88% of total exports) for $15.4 billion. 8,1 т драгметалла Россия exported to Kazakhstan, 7,3 т – to Switzerland, 5,7 т – to India, 5,5 т – to Germany, 3,7 т – to Belarus, 2,1 т – to Turkey. Помимо Германия в ЕС импортером российского золота в 2021 г. It was Poland, but the volume of deliveries to this country last year was symbolic – 0.3 kg for $10,000.

Despite the fact that unfriendly countries began to introduce an embargo on Russian gold only in the summer, other sanctions restrictions have already affected Russian gold miners.

Canadian Kinross Gold was forced to sell its assets in Russia Russian Highland Gold for $340 million. Registered in Great Britain, Petropavlovsk could not sell gold due to London sanctions against Gazprombank from the end of March to the middle of May (the company had to sell the mined metal to the bank under the terms of the credit agreements). “Полиметалла” gold sales for the first half of 2022. упали на 23% до 456 000 онций, the company is considering the sale of Russian assets for the restoration of capitalization (since February 24, when the special military operation (СВО) of Russia began in Ukraine, shares of Petropavlovsk on the London stock exchange have fallen 6 times).

The authorities of Russia this year stimulate internal demand for gold. February 28, 2022 After nearly two years, the Central Bank of the Russian Federation resumed the purchase of gold in the domestic market, and from March 1, the government of the Russian Federation canceled VAT on the purchase of precious metals in bars by citizens.

The world price of gold did not react to news about sanctions. At 18:27 Moscow, the gold futures price on the Comex (USA) commodity exchange rose 0.3% to $1705 per ounce. In the middle of July price for the first time since March 2021. It fell below $1700 per ounce. 8 March 2022 Quotations exceeded $2000 per ounce.

Для России продажа золота за рубеж – second by value export stream after energy carriers, confirms the analyst “Finama” Alexander Potavin. The maximum gold export in recent years was recorded in 2020. – 320.2 т на $18.5 billion, indicates on. The analyst reminds that London is the center of global trade in gold, that is why about 90% of gold from Russia is exported to Great Britain. Но с апреля 2022 г. At six Russian refineries, they revoked the status of a reliable supplier, and since then, the export of gold to Europe has actually stopped, emphasizes Potavin.

Analyst of the metallurgical sector of the analytical management of “Otkritie Research” bank “Otkritie” Daniil Karimov adds that sanctions against the largest Russian banks have led to the actual cessation of gold exports from Russia to the EU (most of the precious metals are sold to banks by gold-mining companies).

According to Boris Krasnozhenov, head of securities market analysis at Alfa-bank, Russian companies can supply gold to China, India and Turkey. Analyst “БКС Мир инвестиция” Anatoliy Klim among the potential markets of sales notes OAE, China, Turkey and Kazakhstan. But in these countries, according to his opinion, most likely, there will be a discount on Russian gold at world prices. The director of the corporate rating group, Ilya Makarov, calls the UAE, China, and Turkey as promising markets.

ЦБ usually buys gold from Russian miners with a discount, explains Potavin. “Russian gold-mining companies can either sell gold at a discount to banks, or try to find a buyer abroad by themselves, taking on the logistics, security and transportation costs,” says the analyst. The government gave the opportunity to gold-mining companies to obtain export licenses for independent export, but considering the special nature of the gold market, it will be difficult for them to find clients even in friendly countries, Karimov emphasizes.

According to Krasnozhenov, the export opportunities of producers not included in the top-10 are particularly limited. According to Makarov, companies with a high share of the export of refined gold suffer the most, and those that export concentrate.

Krasnozhenov notes that the sales of Russian companies in the II quarter could be significantly reduced, which can be seen in the example of “Polymetal”. Добыча золота в 2021 г. sokratsya, but holding back the magnitude of the fall will accumulate stocks, predicts Karimov. According to him, the company can also reduce the volume of expenses for stock replenishment. Klim notes that it will be extremely important for companies to optimize the cost of production. He adds that the ability of the Central Bank, the Ministry of Finance and the Government to form a mechanism for the purchase of gold will be important for the industry.

On the world price of gold, the sanctions will be very limited, analysts agree. “In a year, only approximately 2% of the available gold reserves are mined, so the balance of supply and demand here is not as important as in the rest of the raw material groups. Российское золото will not lose its positions on the world market”, – notes Krasnozhenov.

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