Russian Gold and Silver Banned from London and New York

As governments across the globe imposed economic sanctions on Russia in response to its invasion of Ukraine, the world’s most important bullion market joined the effort to squeeze Moscow’s finances. The London Bullion Market Association (LBMA) on March 7 suspended all six Russian gold and silver refineries from its “Good Delivery list”— a group of refiners whose gold and silver bars meet the required standard for acceptance in the London bullion market. 

The suspension, in effect, prevents Russian refiners from having their newly minted bars traded in London, where trillions of dollars of precious metals exchange hands each year. The LBMA Good Delivery list is the international standard for gold trading, as most banks will only accept gold and silver coming from an accredited refinery. Russian gold and silver produced prior to the suspension date of March 7 will still be accepted for trading.

CME Group, which operates the COMEX commodities exchange in New York where U.S. gold and silver futures trade, followed shortly afterwards by suspending its approval of the six Russian refiners’ gold and silver for delivery of futures contracts.

The six Russian refiners impacted are JSC Krastsvetmet (gold and silver), JSC Novosibirsk Refinery (gold and silver), JSC Uralelectromed (gold and silver), Moscow Special Alloys Processing Plant (gold), Prioksky Plant of Non-Ferrous Metals (gold and silver) ,Shyolkovsky Factory of Secondary Precious Metals, SOE (gold and silver).