Turkey’s President Recep Tayyip Erdoğan said on Tuesday that Venezuelan gold would be processed in the Central Anatolian province of Çorum.
Speaking at a rally ahead of local elections on March 31, the president said Çorum would reach a new level in terms of gold trade amid reports that Venezuela sells most of its gold to Turkish refineries.
On Monday Reuters reported that Venezuela uses some of the proceeds to buy consumer goods such as pasta and powdered milk, citing people with direct knowledge of the trade.
Trade between the two nations grew eightfold last year.
A Nov. 1 executive order signed by US President Donald Trump bars US persons and entities from buying gold from Venezuela.
It does not apply to foreigners.
Venezuela in December 2016 announced a direct flight from Caracas to İstanbul on Turkish Airlines. The development was surprising given the low demand for travel between the two nations.
Trade data show those planes are carrying more than passengers. On New Year’s Day, 2018, Venezuela’s central bank began shipping gold to Turkey with a $36 million air shipment of the metal to Istanbul. It came just weeks after a visit by Maduro to Turkey.
Shipments last year reached $900 million, according to Turkish government data and trade reports.
Venezuela’s central bank has been selling its artisan gold directly to Turkish refiners, according to two senior Venezuelan officials. Proceeds go to the Venezuelan state development bank Bandes to purchase Turkish consumer goods, the officials said.
Gold buyers include Istanbul Gold Refinery, or IGR, and Sardes Kıymetli Madenler, a Turkish trading firm, according to a person who works in Turkey’s gold industry as well as a Caracas-based diplomat and the two senior Venezuelan officials.
Full article: Erdogan Says Venezuelan Gold Will Be Processed In Turkey (ZeroHedge)