Armenian companies are actively assisting Russia in circumventing Western embargoes on gold trade, according to investigations by The Insider and Hetq. These schemes are reportedly backed by influential Armenian politicians and businesspeople. Since 2022, Armenia has imported 89 tons of Russian gold worth $5.2 billion, and by the beginning of 2023, the figure had risen to 111 tons worth $6.2 billion. However, the gold does not remain in Armenia: the majority is re-exported to the UAE. Simultaneously, large sums of cash and securities flow from the UAE to Armenia, presumably as part of reciprocal financial arrangements.
Following the 2022 embargo on Russian gold, aimed at curbing Russia’s financial resources, major gold exports shifted from the UK and other Western countries to Eastern destinations like the UAE, Hong Kong, and Turkey. By April 2023, however, gold exports beyond the Eurasian Economic Union had ceased entirely. At this point, Armenia emerged as a critical transit hub, with gold exports from the country reaching a record 59 tons in the first half of 2024.
Key importers of Russian gold include companies affiliated with Armenian politicians and business figures. One major player is the Yerevan Jewelry Factory, linked to Khachatur Sukiasyan, a lawmaker from the ruling Civil Contract party. The factory purchased gold from around 30 Russian companies and re-exported it as Armenian jewelry. Other significant importers include Diamond Standard, TB Arm, and Win-Gold, some of which also act as exporters. For instance, Win-Gold and GG-Group, owned by businessman Gor Sharyan, exported unprocessed gold.
Armenia’s jewelry industry has experienced a sharp rise, with jewelry exports growing from $26 million in 2020 to $499 million in 2023. However, claims that all the gold imported in 2024 is utilized by the jewelry industry are questionable. A Hetq expert notes that these volumes far exceed the industry’s actual needs.
Economist Agasi Tavadyan explains that Russian companies leverage Armenia to bypass sanctions, as the country does not impose export duties on gold. This strategy reduces costs and avoids currency operation challenges caused by sanctions. The flow of cash and securities from the UAE to Armenia in 2022 totaled $1.45 billion, underscoring the scale of the operation.
