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Some Gold Refineries Are Refusing to Remelt Russian Bars

  • Refineries refuse to remelt bars, even though rules permit it
  • LBMA has told refineries they can accept Russian gold bars
A worker pours molten gold into a mold at a foundry in Kasimov, Russia.

A worker pours molten gold into a mold at a foundry in Kasimov, Russia.

Source: Bloomberg

Some gold refineries are refusing to remelt Russian bars even though market rules permit them to do so, in a sign of how toxic the country’s products have become in certain commodities markets. 

The London Bullion Market Association, a club of big banks that acts as the overseer of the world’s key gold market, has drawn a distinction between newly produced Russian gold, which it has barred from its market, and metal that was produced before the invasion, which it is still allowing to trade. However, at least two major gold refiners are refusing to remelt old Russian bullion bars, according to people familiar with the situation who asked not be identified as the matter is private.