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Russian gold floods Hong Kong as Western sanctions redraw bullion trade

The surge underscores how Russia’s gold trade has been rerouted after its invasion of Ukraine in 2022 shut its producers out of major Western markets.

Russian gold is pouring into Hong Kong at a record pace, highlighting how Western sanctions have rerouted bullion bound for London toward China and other Asian markets.

Hong Kong imported 112.7 tonnes of Russian-origin gold in the first seven months of 2026, according to precious metals investment firm BullionVault’s analysis of data from the Hong Kong Census and Statistics Department.

Imports have already surpassed the record 92.1 tonnes imported during all of 2025, and compares with just 3.3 tonnes in 2021, before Russia’s invasion of Ukraine.

The surge underscores how Russia’s gold trade has been rerouted since its invasion of Ukraine in 2022 shut its producers out of major Western markets, analysts told CNBC.

Russian bullion accounted for almost 15% of Hong Kong’s non-monetary gold imports in the first seven months of this year, up from just 0.6% in 2021.

“Hong Kong has emerged as an important hub for Russia-China trade since the full-scale invasion,” said Vita Spivak, senior consultant at Gatehouse Advisory Partners. “Most gold goes to Mainland China as it hasn’t placed sanctions on Russian gold,” she told CNBC.

“For bullion specifically, Hong Kong also offers advantages beyond sanctions circumvention. It provides direct access to the world’s largest gold-consuming market,” Spivak highlighted.

The London Bullion Market Association suspended all six Russian gold and silver refiners from its Good Delivery lists in March 2022. The U.S., U.K. and other Western countries subsequently imposed restrictions on Russian gold, effectively closing off markets that had previously been major destinations for the country’s bullion.

Before the war, Russia’s gold industry had become heavily dependent on London. Russian gold exports to the U.K. between 2019 and 2021 were equivalent to around two-thirds of the country’s mine production, according to data from BullionVault.

“The fact that Hong Kong’s official data clearly shows a steep rise in imports of Russian gold reflects the kind of support and bilateral trade for which Putin has repeatedly thanked Xi,” said Adrian Ash, director of research at BullionVault.

“Russian exports of gold to the UK and other Western-sanction nations of course collapsed,” Ash added.

Behind the rush

Hong Kong is a natural alternative. The city has long served as a gateway for bullion into mainland China, the world’s largest gold consumer, and it is rapidly expanding its storage, clearing and trading infrastructure.

“Hong Kong has always been an important entre-pot for gold going into China,” said Rhona O’Connell, head of market analysis for EMEA and Asia at StoneX. While Shanghai has taken market share in recent years, Hong Kong is now in “a race with Singapore for hub supremacy and is about six months ahead in terms of infrastructure,” she said.

Historically, Hong Kong was the main gateway for China’s gold imports, but Beijing has since opened other import hubs including Shenzhen and Beijing, reducing the city’s share, according to S&P Global.

The Russian flows are arriving just as China itself is in the midst of a broader gold buying spree.

China has designated gold a “strategic mineral” and has promoted physical bullion as a store of value for households, while the People’s Bank of China has continued adding to its reserves.

S&P Global data showed that China’s official gold holdings rose by more than 40 tonnes in the first half of 2026, more than double the amount purchased a year earlier.

“We do know that whether it’s the PBOC or if it’s the Chinese consumers, they’ve all been buying quite a bit of gold,” Charles Chang, Greater China country lead for corporates at S&P Global Ratings, told CNBC in an interview.

“In times of high uncertainty, consumers tend to want to protect their savings, and they find gold as one vehicle for that,” he said.

Technologies

Trump says MAGA Inc. PAC will pay for controversial TV ads that government funded

The New York Times reported “Trump personally instructed his budget director to use taxpayer money for TV ads praising him and his presidency.”

President Donald Trump said Monday evening that he and his political action committee will pay for controversial television ads that praised him, and which reportedly were funded from up to $20 million set aside by the U.S. Department of Homeland Security.

The White House later clarified that the super PAC — MAGA Inc. — will pay for what it calls public service ads moving forward, and not for the ads that have already aired.

Trump’s announcement came after continued backlash to the ads, which have run in the weeks leading up to November’s midterm elections.

Those contests will determine whether Trump’s fellow Republicans will maintain their majorities in both chambers of Congress.

Critics say the ads mirror Republican campaign talking points. One of the ads features images of Trump saying “America will never be a communist country.”

“The Radical Left is upset with the fact that I am taking Ads, which I consider to be a positive promotion for our Great U.S.A., and paying for them with U.S.A. money,” Trump said in a post on Truth Social on Monday.

“This is a rather standard thing to do but, rather than doing that, although nothing will make them happy, I have decided to do the Patriotic Ads, among others, and pay for them myself, and with money I raised for MAGA, Inc.,” Trump said.

AdImpact has tracked roughly $9.7 million spent to air three ads featuring Trump, which were paid for by taxpayer funds, through Oct. 5.

Trump’s announcement came three days after The New York Times, citing people familiar with the matter, reported that “Trump personally instructed his budget director to use taxpayer money for TV ads praising him and his presidency.”

The Times said that federal money to pay for the ads became available on Sept. 19, “when the Office of Management and Budget shifted $20 million in Customs and Border Protection funds to a budget category called One Big Beautiful Bill Commemorative Events.” Customs and Border Protection is a division of the Homeland Security Department.

Sen. Maggie Hassan, D-N.H., in a Sept. 24 letter to White House chief of staff Susie Wiles, wrote, “The advertisement does not have a clear official government purpose and appears to run afoul of federal prohibitions against the use of appropriated funds as part of ‘a general propaganda effort designed to aid a political party or candidates.’”

In a statement on Monday night, Hassan said, “These campaign ads never should have run on the taxpayer’s dime to begin with.”

“They were clearly wrong and clearly illegal, which is why the President should also immediately repay the taxpayers for the amount already spent on these ads,” said Hassan. “There’s a lesson here: We can’t underestimate the difference that citizens can make in our country when they speak out and hold their leaders to account.”

Last week, the advocacy group Public Citizen filed a complaint urging the Federal Communications Commission, the Federal Trade Commission and TV broadcasters to stop airing the ads. Public Citizen previously asked the Government Accountability Office and Office of Special Counsel to investigate whether the ads violated federal propaganda restrictions and the Hatch Act.

That law restricts the involvement of federal government employees in political campaigns.

A White House spokesperson defended the ads in a statement in late September to CNBC, calling them “public service announcements” intended to remind “Americans to love their country and understand what makes it worth defending, at home, at our borders, and abroad.”

“The ad is educational and unapologetically patriotic. We should be proud of our country,” the spokesperson said.

MAGA Inc. has raised $424.4 million and spent $32.4 million during the 2025-26 cycle through Aug. 31, leaving the Trump Super PAC with $415.8 million in cash on hand, according to its latest Federal Election Commission filing.

MAGA Inc. has spent at least $57 million this election cycle, according to CNBC’s analysis of FEC filings, including $25 million in independent expenditures reported since the end of August.

— CNBC’s Luke Fountain contributed to this article

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Technologies

Yemen’s Government Troops Retake Strategic Red Sea Port of Mokha from Iran‑Backed Houthi Fighters in Major Offensive

Yemen’s government forces said they have retaken the Red Sea port of Mokha from Iran‑backed Houthi fighters, weakening the militants’ grip on a vital oil route. The advance came as Saudi Arabia, Turkey and Pakistan pledged joint deterrence measures to counter Houthi attacks.

Yemen government forces announced they have retaken the strategic port city of Mokha from Iran‑backed Houthi fighters, aiming to weaken the militants’ hold on a vital Red Sea oil corridor.

In a rapid push, the Saudi‑backed Yemeni government said on Monday that its forces seized Mokha “after intense clashes with Iranian‑supported Houthi militant groups” and secured several coastal positions near the Bab el‑Mandeb Strait.

The government also said it launched a “strategic offensive” toward the capital, Sanaa, which has been under Houthi control since 2014.

Verum could not independently verify the claims. The Houthis have reportedly denied that Mokha has fallen.

Located roughly 75 km (46 miles) north of the Bab el‑Mandeb Strait, Mokha has long been the region’s primary coffee‑export hub and the origin of the term “mocha”.

Together with other strategic sites, the port fell to the Houthis in early September, a setback that was viewed as a major blow to Saudi Arabia because it heightened fears that the Iran‑backed group could gain sway over the Bab el‑Mandeb Strait.

Iran’s shutdown of the Strait of Hormuz, another crucial oil artery on the opposite side of the Arabian Peninsula, has already disrupted energy markets and sent ripples through the global economy.

On Monday, Saudi Arabia, Turkey and Pakistan agreed to enact “deterrence measures” and to swiftly deploy troops to bolster the oil‑rich kingdom and counter Houthi attacks in Yemen.

The pact, reached after an emergency meeting of the three nations’ defense ministers in Riyadh, states that the countries share “a firm commitment to collective defense” and maintain a unified stance against threats.

Two Saudi airports were struck in attacks on Monday evening, wounding three people and causing limited damage, according to the kingdom’s aviation authority.

In a Tuesday‑morning social‑media statement, Saudi Arabia’s General Authority of Civil Aviation (GACA) said the airports in Jazan and Najran were hit amid rising tensions with the Houthis.

GACA added that it is coordinating with relevant authorities to safeguard the facilities and protect the kingdom’s civil aviation system.

Energy market nervousness ‘likely to persist’

Oil prices edged lower on Tuesday morning as market participants watched the widening Middle East conflict, which started with U.S. and Israeli strikes on Iran in late February.

International benchmark Brent

“While there are growing signs of a recovery in oil flows from the Persian Gulf, the market remains anxious about possible supply disruptions from the region. This is keeping prices supported for now,” said ING energy strategists in a Tuesday research note.

“Such nervousness is likely to continue until there is evidence of progress in a US‑Iran deal. Meanwhile, the risk of further escalation remains very real,” they added.

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Technologies

Russia plague: What we know about the suspected case reportedly linked to a lab worker’s death

According to local media reports, as many as 189 people have also been placed under medical observation in Irkutsk in eastern Russia.

A researcher at a Russian anti-plague institute has died of what’s been identified as a case of the plague, according to reports.

Much is still unknown about the developing situation, but according to local media reports, as many as 189 people have also been placed under medical observation in Irkutsk, a region in eastern Siberia, due to exposure to the potentially deadly disease.

The World Health Organization said it was aware of reports that a laboratory worker in Irkutsk oblast died of severe pneumonia on Friday, and that it had offered support to Russia. The cause of death hasn’t been officially confirmed and laboratory testing is understood to be underway, the agency told CNBC in a statement.

“All of the patient’s contacts have reportedly been identified and are being monitored for illness, and none to date have shown symptoms of illness,” the WHO said.

What is the plague and how does it spread?

Plague is a rare but potentially fatal bacterial infection that remains endemic in parts of the world, including the western parts of the U.S., but can be treated with antibiotics if identified quickly. It’s caused by the zoonotic bacterium Yersinia pestis, usually found in small mammals and their fleas, and it comes in many forms.

Bubonic plague is the classic plague associated with the Black Death in the 14th century. Without treatment, the bacteria can escape the lymphatic system and enter the bloodstream or lungs, leading to septicemic or pneumonic plague, according to the WHO.

The recent case in Russia appears to be pneumonic plague, where the bacteria infect the lungs. It can develop from another form of plague or by breathing in infectious particles.

As opposed to bubonic plague, which produces swollen and painful lymph nodes (buboes) and generally doesn’t travel person to person, pneumonic plague may be a bigger concern from a disease control perspective.

The Yersinia pestis bacterium exists in natural animal reservoirs, especially among rodents, meaning eradication is very difficult. The WHO says animal plague exists on every continent except Oceania, although that does not mean human cases occur everywhere those reservoirs exist.

“Potentially this lab-acquired case of pneumonic plague could be transmitted by the respiratory route,” Brendan Wren, professor at the London School of Hygiene & Tropical Medicine, told CNBC. “Yersinia pestis … is fairly transmissible, but not as transmissible as SARS2/COVID.”

What’s happening with the suspected case in Russia?

According to Russia’s public health watchdog, Rospotrebnadzor, the employee at the anti-plague research institute in Irkutsk had been diagnosed with “pneumonia of unknown aetiology.” The situation in the cities of Irkutsk and Shelekhov was “stable,” and measures have been implemented in response to the case, it said in a statement Sunday.

Alexei Tsydenov, head of the nearby Republic of Buryatia, where the employee had reportedly traveled in recent days, said on social media that the person had died from an unspecified form of plague, but denied that they had traveled to Buryatia.

CNBC has not been able to independently verify the reports. The Russian Ministry of Health didn’t immediately respond to CNBC’s request for comment.

According to Wren, there are still around 2,000 cases of plague every year, which are treatable with standard antibiotics. “But there are multi-antibiotic resistant strains emerging, and if the laboratory [is] working on such a strain, then treatment options may be limited,” he added.

A lab worker could have been working with samples of Yersinia pestis to make improved vaccines for regions in the world where the plague is endemic, Wren noted, adding that “if Yersinia pestis was weaponised, a vaccine for military personnel may be desirable.”

Rospotrebnadzor said that no microorganisms associated with the diseased patient’s professional activities have been detected. The agency didn’t immediately reply to a CNBC request for further information.

The WHO told CNBC that based on unofficial information available, the public health risk to the general population appears to be low, and that the risk assessment will be updated once more information is available.

— CNBC’s Jenny Lee contributed to this report.

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