Forget Oil, Russia Sells Record Gold to India Amid Ukraine War, Thwarts Trump’s Sanctions

Moscow/India: Despite heavy sanctions imposed by the United States and Western countries over the ongoing war in Ukraine, Russia has continued to maintain trade with friendly nations, notably India, using innovative methods to bypass restrictions.

Last year, U.S. President Donald Trump sought to curb Russia’s war funding by targeting its energy exports, including imposing punitive tariffs on countries like India purchasing Russian oil. However, these measures have not significantly weakened Russia. Instead, Moscow has increasingly turned to gold as a medium for its transactions with India.

Record Gold Exports to India
According to Russia’s RIA Novosti news agency, Russia exported over $50 million (approximately ₹45.8 billion) worth of gold to India during the first ten months of 2025. The shipments resumed in August 2025 with a $23.4 million consignment—the largest since 2021—followed by a $26.9 million shipment in October. These figures are based on data from India’s Ministry of Commerce and Industry.

U.S. Tariffs on Russian Oil
In August 2025, the Trump administration imposed an additional 25% tariff on Indian purchases of Russian oil, bringing total U.S. tariffs on such imports to 50%—among the highest in the world. The White House argued that purchasing Russian oil could fund Moscow’s military operations in Ukraine. Reports suggest that India reduced its Russian oil imports following the tariff hike.

Russia Turns to Gold and Foreign Currency Reserves
Faced with declining revenues from oil and gas exports due to sanctions, Russia has accelerated sales of foreign currencies from its National Wealth Fund (NWF) and is drawing on its gold reserves. The Moscow Times reported that between 16 January and 5 February, Russia plans to sell $16.5 million worth of Chinese yuan and gold daily, totaling $2.48 billion—a figure surpassing its sales during the COVID-19 crisis. Over the past four years, Russia has reportedly sold nearly 60% of its gold holdings from the fund.

By leveraging gold and alternative currencies, Russia continues to sustain trade and maintain financial flexibility, highlighting the limits of Western sanctions and the strategic economic relationship between Russia and India.