Sudan – and gold
Gold is currently selling at $4,038.05 an ounce. It has increased in value 121 percent in under five years.
It is also financing a civil war in Sudan which, according to the UN, has killed 150,000 civilians, displaced 25 million people and left 30 million facing acute hunger.
The two main Sudanese warring parties — the Sudan Armed Forces (SAF) and the Rapid Support Forces (RSF) — now rely heavily on gold as a source of income.
In 2024, gold production reportedly generated $1.7bn for Sudan via official channels. But then there are the unofficial channels, and, according to a UN Sanctions Committee Report, illicit smuggled gold is worth many times more than that which leaves the country through legal official channels.
The conflict over gold isn’t just a domestic issue. It is tied into a regional ecosystem with armed Sudanese actors with both camps connected to smugglers, refineries and foreign governments. All of which allows the two armies to convert gold into cash to buy weapons, fuel, food and other war needs.
Gold is the ideal money source for Sudan’s warring parties. For a start, Sudan has a lot of it. It is in the world’s top five for gold production. And geologists reckon that because conflict has prevented full exploration, there could be a lot more glitzy minerals in the Sudanese hills.
Next, it is relatively easy to mine, especially if you have no compunction about using environmentally dangerous and toxic mercury. The Sudanese warlords are not known for their green credentials.
Then, there is the fact that it is easily transportable. You can melt it down and mould into any easily smuggable shape, paint it black and carry it out to the gold markets where there is a constant and strong demand which means that the gold can be quickly converted into cash.
The biggest market is Dubai in the United Arab Emirates. The Dubai Gold Souk has been a major gold trading hub for centuries. In addition to the traditional souk with its hundreds of bullion shops there is a major free trade zone known as the Dubai Multi Commodities Centre. There is also a major gold refinery—Emirates Gold. In 2024 $186 billion in gold passed through the UAE.
More than 97 percent of Sudan’s gold is sold on the Dubai markets after being smuggled out through Egypt or Chad. Some of it is perfectly legal—about $1.52 billion. Just how much is illegal can be guessed at, but Swissaid, which monitors gold transfers, reckons that 60 tonnes of illegal smuggled gold is sold in Dubai. This could be worth up to $7 billion.
The UAE authorities say they follow OECD Due Diligence Regulations for Responsible Mineral Sourcing to ensure that the gold that they sell is coming from legitimate sources and is not being used to fund war. But this is challenged by Swissaid, Chatham House and the Financial Action Task Force, which was set up to combat money laundering and terrorist financing.
If the UAE authorities can be persuaded to stop the flow of illicit gold then it will sever the pipeline which is financing the fighting in Sudan and—hopefully—lead to its end.
Ukraine
Details of Trump’s latest peace plan for Ukraine are starting to leak out. The plan basically calls for Ukraine’s surrender.
Crimea, Luhansk and Donetsk would be “recognized as de facto Russian, including by the United States.”
“Kherson and Zaporizhzhia will be frozen along the line of contact, which will mean de facto recognition along the line of contact,” the proposal states. “Russia will relinquish other agreed territories it controls outside the five regions.”
The proposal also states: “It is expected that Russia will not invade neighbouring countries and NATO will not expand further.”