How Armenian Oligarchs Are Helping Russia Bypass Western Gold Sanctions

Investigative reports by Armenian outlet Hetq and Russia-focused media platform The Insider have uncovered how Armenian companies are helping Russia bypass Western sanctions on gold trading. The findings shed light on billions of dollars’ worth of Russian gold flowing through Armenia since 2022, with none of it remaining in the country.

Gold exports are a vital component of Russia’s economy, but the West’s sanctions have heavily restricted its trade. In June 2022, the United States imposed a ban on importing Russian gold. While technically a U.S.-specific embargo, the ripple effects were global as banks refrained from dealing with Russian gold due to investment and trading restrictions.

With traditional markets such as the UK no longer accessible, Russia redirected its gold trade to countries like the UAE, Turkey, and Hong Kong. However, these routes also closed by April 2023, leaving the Eurasian Economic Union (EAEU) as the only viable destination for Russian gold.

Armenia has since emerged as a significant intermediary. Data from Armenia’s Customs Service shows a sharp increase in gold imports in 2023, with the first half of 2024 recording $4.4 billion (approximately 66 tons) in gold imports. Nearly all of this gold, primarily in raw form, was imported from Russia and subsequently exported.

Russian customs data indicates Armenia purchased $5.2 billion in gold between 2022 and 2024. The discrepancy with Armenian figures may result from differences in reporting timelines.

The investigation revealed that companies tied to prominent Armenian politicians and oligarchs are at the forefront of this gold trade.

One major player is Yerevan Jewelry Factory LLC (YJF), linked to the family of Khachatur Sukiasyan, a ruling Civil Contract party member and influential businessman. The factory has sourced gold from dozens of Russian suppliers and is involved in re-exporting Russian-origin jewelry, often disguising its origins to ensure smooth international trade.

Khachatur Sukiasyan and his family control a wide range of businesses, including Armeconombank, Sil Insurance, and Sil Concern, a conglomerate encompassing retail, real estate, and the Fly One Armenia airline.

Another key company is Tibi Arm LLC, which was registered in Armenia in May 2022. Initially co-owned by Armen Tadevosyan, the company also briefly included George Stanley, a UAE citizen, as a majority stakeholder before he transferred his shares back to Tadevosyan.

Interestingly, Armenian banks have not played a major role in this gold trade, indicating the process is largely handled through private companies.

Investigative reports suggest some Armenian companies attempt to obscure the Russian origin of imported gold and jewelry to facilitate exports. By repackaging and rebranding products, these companies sidestep sanctions and enable continued trade.

Armenia’s involvement in the Russian gold trade shows its role as a critical node in circumventing Western sanctions. While it benefits financially, this activity raises questions about its compliance with international norms and its geopolitical alignment.

As Armenia becomes a key player in Russia’s gold trade under sanctions, its actions may attract scrutiny from Western governments and financial institutions. The findings by Hetq and The Insider underline the complexities of global trade amid geopolitical conflicts, revealing how sanctions often result in creative—and controversial—workarounds.