Sberbank CIB News

Sberbank begins trading physical gold on the International Board of the Shanghai Gold Exchange


Sberbank CIB announces that Sberbank (Switzerland) AG has begun trading physical gold on the International Board of the Shanghai Gold Exchange (SGEI), a global centre for the physical trade of gold, silver and other precious metals. The pilot transaction was done in July with 200 kg of gold kilobars sold to the local financial institutions.

Sberbank (Switzerland) AG was granted international membership of the Shanghai Gold Exchange (SGEI) in September of 2016. The membership gives Sberbank CIB direct access to the rapidly growing Chinese gold market and to a trading venue with increasing influence in the international market. Sberbank CIB plans to expand its presence on the Chinese precious metals market, which is the world’s largest consumer of physical gold, and anticipates the total delivery of 5-6 tonnes of gold to China alone in the remaining months of 2017. Gold bars will be delivered directly to the official importers in China as well as through the exchange.

Andrey Shemetov, Head of Global Markets in Sberbank CIB, Managing Director, commented: “We have been taking serious steps to expand our international presence. Launching operations in China has always been a top priority for our growing presence in Asia. Sberbank (Switzerland) AG started physical precious metals operations in India, currently the second largest consumer of gold in the world, in February 2017. It is planned to deliver between 20 and 25 tonnes of gold total to up to 20 locations throughout India this year. Chinese and Indian markets are of paramount significance for increasing the scale of our global physical commodities business.”

Sberbank is one of the largest operators on the Russian precious metal market, providing a full suite of solutions for corporate clients and financial institutions across the precious metals spectrum and around the world. Commodity trading is one of Sberbank CIB’s strategic pillars, and management is committed to making this division a major regional player.

To support these growth plans, Sberbank CIB continues to develop its commodity hub in Switzerland to complement and support its existing centre of precious metal trading in Moscow. This hub will have a strong focus on international physical deliveries of metals, financing of physical commodities routes throughout the globe combined with a broad offering of risk management solutions. This two-hub (Moscow and Zurich) strategy will offer significant flexibility to Sberbank Group and will allow it to act as a supplier from either location. Sberbank CIB has forecast a supply of 50 to 60 metric tonnes of gold bullion into the Asia and Middle East region in 2017.

Sberbank CIB

Sberbank CIB1 is the corporate and investment banking business of Sberbank. Its key areas of activity are corporate finance (including trade finance), the documentary business2, investment banking services, trade operations with securities, and private equity. Sberbank’s corporate and investment banking business provides integrated financial solutions and investment advisory services to its clients, which include major corporations, financial institutions, sovereign states and federal and sub-federal government bodies and organisations.


1 On the basis of JSC “Sberbank CIB” and Sberbank
2 Banking products and services provided by Sberbank