Key Facts

• Armenia Key to Russian Gold Evasion: Armenia facilitates billions in Russian gold exports, re-routing bullion primarily to the UAE despite sanctions.
• Opaque Gold Trade Networks Exposed: Investigations link Armenian firms and politicians to laundering and rebranding Russian gold for global markets.
• Sanctions Risks Mount as Armenia Faces Scrutiny: Gold flows plummet mid-2024 amid fears of secondary sanctions targeting Armenia’s role in evasion schemes.

Kremlin Strategy

Russia’s deployment of the “Oreshnik” initiative within Ukraine, paired with a stark warning from Putin aka Vasily, marks a critical compromise within Politburo 2.0 as peace negotiations loom. This tactical move appeases the majority within Russian leadership who oppose further escalation, such as mass mobilization or tactical nuclear strikes, while also addressing the demands of hawkish factions dominating military strategy. There is consensus in Moscow that U.S. President Donald Trump, newly elected, is both aware of and tacitly supportive of the outgoing U.S. administration’s decisions regarding the conflict. Despite internal divisions, key Kremlin factions share a desire to negotiate an end to the war with Washington, though they remain split on acceptable terms for any settlement.

Armenia’s Role

Meanwhile, intelligence reports expose Armenia as a critical hub for Russia’s evasion of Western gold sanctions. Armenian officials and business elites are orchestrating the re-export of Russian gold worth billions of dollars, primarily to the Gulf region. Despite these imports, the gold does not remain in Armenia, raising suspicions over the covert flow of cash and financial instruments linked to these transactions. Gold, a cornerstone of Russia’s non-energy export economy, was targeted by U.S. sanctions in 2022 following the invasion of Ukraine. These measures, designed to globally restrict Russian “bank gold,” blocked its use in international finance. In response, Russia redirected its gold trade eastward, with Armenia emerging by 2023 as a key intermediary.

Sanctions Evasion

From 2022 to mid-2024, Armenia imported 111 tons of Russian gold worth $6.2 billion—approximately one-third of the nation’s GDP. Discrepancies in trade data highlight opaque reporting practices, yet the volume underscores Armenia’s central role in re-routing Russian bullion.

Deep Ties

Investigations reveal that Armenian gold-importing firms are closely tied to influential politicians and oligarchs. A prominent example is the Yerevan Jewelry Factory, reportedly linked to ruling party MP. This entity is accused of laundering Russian gold by rebranding it as Armenian-made before exporting it. Other implicated entities, including banks and suspected shell companies, have withdrawn from the trade under growing sanction risks. Despite public denials of wrongdoing, the silence of these actors fuels further suspicion.

Loopholes and Risks

Armenian gold exports skyrocketed in early 2024, with 59 tons worth $4.1 billion sent abroad, primarily to the Gulf region. At the same time, parallel inflows of cash and securities from this area into Armenia suggest a covert trade network designed to bypass financial oversight and sanctions enforcement. Armenia’s membership in the Eurasian Economic Union (EAEU) creates a significant advantage, as it exempts Russian gold imports from export duties. This allows Russian traders to circumvent sanctions by funnelling gold through Armenia. Economists warn that this arrangement exploits a major legal loophole, helping Russia to avoid direct sanctions while continuing its trade activities.

Secondary Sanctions

The Armenian Ministry of Economy acknowledges the risk of secondary sanctions due to its facilitation of Russian gold exports but insists on robust monitoring mechanisms. Notably, gold trade volumes have sharply declined since mid-2024, signaling caution under growing international scrutiny. These developments underscore Armenia’s pivotal role in the evolving network of Russian sanctions evasion, placing the country under intensified global attention as the geopolitical chessboard shifts.