'Blood Gold' Flowing Through Sanctions

According to Russian Central Bank data, Russia's gold reserves reached a record high of $310 billion in December 2025. Despite Western sanctions blocking gold exports, this figure has been achieved through illegal gold trade from Africa.

Since the full-scale invasion of Ukraine in 2022, Russia has been using Africa as a bypass route after its gold exports to the West were blocked. Specifically, Russia launders gold through Mali, which is not subject to gold sanctions, by relabeling it as third-country products before re-exporting.

According to the independent investigative organization 'Blood Gold Report', the total value of gold extracted from Africa through smuggling networks linked to the Kremlin from 2022 to present exceeds $2.5 billion. This gold is believed to have been used to pay for Iranian military support and purchase North Korean weapons.

Wagner Mercenaries and Africa Corps Seize Mines

Russia's African gold plundering operation is led by Wagner Group mercenaries and their successor organization, the 'Africa Corps'. They have occupied gold mining areas across West Africa, from Sudan to the Central African Republic (CAR), seizing mines through murder and torture.

Local residents and miners are exposed to violence from Russian mercenaries, making legitimate mining operations virtually impossible. Gold produced at the mines is either transported directly to Moscow via Russian military aircraft or distributed to international markets through non-sanctioned countries like Mali.

Notably, in late December 2025, Russian military aircraft disguised as civilian flights were detected transporting gold and military supplies to and from Tehran. This is a prime example of Russia using gold as physical currency.

The 'Gold Economy' Created by Western Sanctions

Ahead of the Ukraine invasion, Russia restructured its National Wealth Fund asset composition to 60% yuan and 40% gold. This was a clear hedging strategy in preparation for Western economic pressure.

The RAND Corporation, a U.S. think tank, stated in a report that "Russia is currently using physical gold in state-to-state transactions, and Russian companies are engaged in gold-for-goods, gold-for-weapons, and gold-for-cash exchanges."

Gold is the optimal means to circumvent sanctions because it is easy to melt and launder, and convenient to move through black markets. Russia is one of the world's largest gold producers and holds stakes across the former Soviet region and throughout Africa.

John Kennedy, director of defense and security research at RAND, explained: "Moscow is currently using gold to sustain its wartime economy and strengthen access to essential supplies, while exerting considerable influence over gold production in Central Asia and Africa."

Russia's Deepening Gold Dependence

The Russian Central Bank is selling physical gold to purchase rubles to cover fiscal deficits. This is a strategy to maintain gold reserves within Russia while securing liquidity.

However, more than half of the National Wealth Fund's gold holdings have already been sold. Russia is rapidly depleting its economic and military resources, and dependence on 'African gold' is surging to fund the war.

The Blood Gold Report, ongoing since 2023, tracks the links between Russian mercenaries, authoritarian African governments, and the mining industry. This investigation plays an important role in providing independent, evidence-based insights when Russian government official figures cannot be trusted.

Challenges for the International Community [AI Analysis]

Russia's African gold plundering goes beyond simple resource smuggling, accompanied by war crimes and human rights violations. Residents of West African gold mining areas suffer from violence by Russian mercenaries, and the mines that are their livelihood have been reduced to war funding sources.

The international community needs to block gold laundering routes through non-sanctioned countries like Mali. In particular, systems for tracking the origin of African gold should be strengthened, and intermediaries and transportation networks linked to Russia should be considered for sanctions.

Given that Russia is trading with sanctioned countries like Iran and North Korea through gold, international monitoring of gold-based payment systems is essential. As Russia's gold dependence increases, the human rights situation in Africa is likely to deteriorate further.

RAND Corporation noted that "Russian companies are deeply involved in gold-for-weapons and gold-for-goods exchanges," analyzing that blocking these transaction networks would be a key strategy to weaken Russia's war-fighting capability.