I took off the bullion: Switzerland bought record amount of Russian gold
Switzerland doubled its imports of Russian gold in annual terms in the first half of the year, although it joined the European embargo on the supply of precious metals from the Russian Federation. Izvestia found out why imports were increased under restrictions, whether it was profitable for the country to buy precious metals against the background of soaring prices, and what the increase in purchases meant for Russia.
We stocked up heartily
According to data from the UN Comtrade platform, in the first half of 2025, Switzerland purchased 10.2 tons of Russian gold for $934.7 million. Compared to the same period last year, imports increased by half in physical terms and doubled in monetary terms.
In total, Switzerland acquired $95.1 billion worth of gold on the world markets in six months, which is 1.8 times more than the level of the same period a year earlier.
The largest supplier was the United States, which supplied Switzerland with gold worth $19.2 billion in the first half of the year. The UAE was in second place, with sales of $17.6 billion. Canada rounded out the top three with exports of $4.5 billion. The top five also included Australia ($4.4 billion) and Uzbekistan ($4.3 billion).
In August 2022, Switzerland joined the European embargo on the supply of gold from Russia. However, as the Swiss authorities later clarified, the metal exported from the country before the embargo was imposed is not subject to sanctions. This allowed Swiss companies to continue importing the precious metal through other countries.
At high prices
The exchange price of gold continues to update historical highs, already above $3,740 per troy ounce.
However, in the context of continuing geopolitical and macroeconomic uncertainty, the demand for gold as a protective asset has been strengthened by all the world's central banks. For example, the People's Bank of China has been buying gold for the 10th month in a row.
Gold is a protective asset against the backdrop of growing geopolitical risks.
— This understanding is shared by the main economic agents of Switzerland with its long-term historical experience of buying gold, especially when prices for the yellow metal are on the rise. A significant factor here is also the absence of VAT on investment gold," says Pavel Paevsky, Head of the Credit Analysis and Macroeconomics Department at RSHB Asset Management LLC.
The Golden Center
In addition, Switzerland is the main supplier of bullion to the physical precious metal market and the center of the global gold trade and processing.
There are four largest refining plants in the country. They import unaffiliated gold from the mines, recycled jewelry, and low-grade ingots for melting into high-quality metal. Further, the bullion goes to the jewelry, watches, technological products market, to the banking sector, to replenish the reserves of central banks, says Dmitry Isakov, CEO of Lender Invest investment platform.
According to the State Secretariat for Economics (SECO), Switzerland accounted for 34% of the total refined gold in the world in 2024.
Adjust the balance
According to experts, US President Trump's policy in the field of cross-border trade, namely the trade duties he imposed everywhere, has also wreaked havoc on bullion trading. The precious metal has become a rather volatile, but in-demand asset.
Against the background of trade duties, US gold imports from Switzerland fell sharply: from 37.6 billion Swiss francs in the first quarter to 1.6 billion Swiss francs in the second.
Thus, for Switzerland, the increased volume of Russian gold exports is a desire to preserve the status of a global gold processing and sale center by all means, especially against the background of restrictions from the White House, Isakov explains.
For Russia, gold sales are a stable source of currency and strengthen the position of one of its leading exporters, and, as a result, support its own trade balance.
Good discounts
There is one more thing: Russian gold is cheaper for the Swiss than the market is asking for.
Due to the limitations, precious metals are most likely purchased through intermediaries, and therefore at a significant discount to its market price, says Mikhail Khachaturian, Associate Professor of Strategic and Innovative Development at the Graduate School of Management Faculty of the Financial University.
According to the economist's estimates, the discount on Russian gold can reach 5-7% of the market price.
— In this sense, Switzerland demonstrates a completely rational approach, which consists in finding the most profitable opportunity for itself to purchase a scarce product of high quality, while being sold at a significant discount due to restrictions. Sanctions are sanctions, and everyone insures their own risks in the event of a global crisis," Khachaturian notes.
In 2024, Russia retained the second place in the world in gold production after China, with an output of about 330 tons.
Переведено сервисом «Яндекс Переводчик»
