The claim that Azerbaijan is being used as a route for Russian gold to reach Western markets, based solely on a comparison between gold production and export volumes, fails to take into account the structure of the country’s state reserves and requires additional evidence. Russian political commentator Vyacheslav Shiryaev told Deutsche Welle that, amid sanctions, Russian gold is reaching Western markets through intermediary countries and that Azerbaijan has allegedly recently been used for this purpose. As his main argument, Shiryaev cited the discrepancy between Azerbaijan’s gold production and export volumes.
According to him, the country produces around three tonnes of gold a year, while it exported around 24 tonnes in six months. However, the fact that exports exceed current domestic production does not, in itself, indicate the re-export of Russian gold. Such a conclusion requires an analysis of the origin of the exported metal, the structure of reserves and transactions involving gold assets.
In Azerbaijan’s case, one of the key factors is the State Oil Fund of the Republic of Azerbaijan (SOFAZ), which has built up a gold portfolio over many years as part of its investment strategy. As of 30 September 2025, SOFAZ’s gold sub-portfolio stood at around 184.8 tonnes. This means that the amount of gold held by Azerbaijan’s state institutions is significantly greater than the country’s annual domestic production.
This is crucial when assessing export statistics. Gold exported by a country during a particular period does not necessarily have to have been mined in the same year. It may represent an investment asset acquired previously.
The sale of part of such reserves is also a normal asset-management operation. State funds and central banks around the world purchase gold when prices are relatively low and may sell part of their accumulated holdings when the market value of the asset rises substantially. Azerbaijan has publicly outlined such a strategy.
President Ilham Aliyev said at the beginning of 2025 that the country had taken a strategic decision to increase its gold reserves. We clearly saw geopolitical developments, and I was absolutely certain that the price of gold would rise. And it has skyrocketed,” the Azerbaijani President said on 5 January in an interview with local television channels.
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