
YEREVAN (CoinChapter.com) — The imposition of sanctions on Russia by the United States and its Western allies, under the leadership of President Joe Biden, has inadvertently sparked a series of developments.
As a result of the ongoing war in Ukraine, the global gold trade landscape has changed. Russia is grappling with the economic consequences of sanctions. Meanwhile, the United Arab Emirates (UAE) has emerged as a key player, leveraging the situation to bolster its gold industry.
The Western economic sanctions target major sectors of the Russian economy, including finance and energy. As a result, these measures have disrupted its ability to access global financial markets. Moreover, they have led to a decline in investor confidence, triggering a sharp devaluation of the Russian ruble.
Consequently, the Kremlin has encountered severe economic headwinds as it tries to avoid a catastrophic defeat in Ukraine.
Russian President Vladimir Putin and his Government are desperate to find funds. As a result, Russia’s gold sector has experienced a surge in activity.
Moscow now seeks to hedge its Gold against the volatility of its currency and safeguard its dwindling reserves. The UAE, recognizing the opportunity arising from Russia’s predicament, has stepped in to capitalize on the growing demand for Gold.

Russia ranks third in global gold production. Before the war, it exported significant amounts of the precious metal to the London market. According to the British government, these amounted to about £12.6 billion ($15.5 billion) in 2021.
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The UAE gains from the US-led sanctions on Russia
The UAE has an established reputation as a global hub for gold trading. Seizing on the opportunity emerging from the US-backed sanctions on Russia, the UAE has swiftly positioned itself as a pivotal intermediary between Russia and the international gold market.
By facilitating transactions and providing a secure platform for gold exports, the UAE has enabled Russian gold producers to overcome the challenges imposed by these sanctions.

Notably, the UAE has played a significant role in creating new gold refineries within its borders. According to a recent Reuters report, these have attracted Russian gold miners seeking alternatives to traditional trading routes.
These refineries allow for the processing and purification of Gold. They also ensure that it meets international standards and is readily accepted in global markets.
Furthermore, the UAE has actively encouraged Russian gold producers to store their reserves in UAE-based vaults. This has come as a safe and reliable storage solution amidst the ongoing economic turmoil.
The move has also reinforced the UAE’s position as a trusted custodian of Gold. Moreover, it has created an environment conducive to expanding its gold reserves and strengthening its status as a key player in the global gold trade.