- BIST10011,523-0.47%
- USD49.60+0.05%
- EUR55.68+0.11%
- GOLD4,100.40-1.20%
- INTEREST37.00%-1.00
- BITCOIN81,734-2.73%
- October 22, 20267°
- BIST10011,523-0.47%
- USD49.60+0.05%
- EUR55.68+0.11%
- GOLD4,100.40-1.20%
- INTEREST37.00%-1.00
- BITCOIN81,734-2.73%
- October 22, 20267°
US and EU sanctions deal blow to Sudan's gold sector
The new US sanctions on Sudan and the European Union's ban on gold imports are threatening a sector that provides livelihoods for 4 million people. Experts warn that financing channels will be cut off and the economic fallout will be heavy.
Sudan's traditional gold mining sector is being shaken by the successive sanctions imposed by the United States and the European Union. These measures target one of the country's most important sources of employment and foreign currency.
US imposes sanctions on Sudan
The US administration enacted new sanctions on July 20 over allegations that Sudan used chemical weapons. These sanctions prevent Sudan from obtaining credit or aid from international financial institutions. Exports of most US goods to Sudan are also banned, except for food and humanitarian supplies.
The Khartoum administration denies the allegations of chemical weapons use. The Sudanese government has formed a national commission to investigate the claims and has called on the US to disclose its evidence.
European Union bans gold imports
The Council of the European Union on July 13 banned the purchase, import and transfer of gold originating from Sudan. The same decision also stopped the sale, supply and export of mercury and cyanide used in gold mining to Sudan. The Council argued that gold is a significant source of revenue for financing the conflict.
The United Kingdom, on July 16, imposed sanctions on illegal gold trade networks fueling the war in Sudan. It targeted 11 individuals and entities said to be financing both the Rapid Support Forces and the Sudanese army.
Deep economic impact expected
Banking analyst Walid Dalil said US sanctions would cut off multilateral development financing channels for at least a year, forcing a shift to less transparent and more costly alternatives. Dalil also stated that correspondent banking relationships, already weakened by the war, would deteriorate further and payment infrastructure projects would be disrupted.
According to Dalil, the sanctions will make imports of industrial and technical inputs more difficult, undermine the post-war revival of production capacity and weaken the Central Bank of Sudan's ability to manage liquidity and the exchange rate.
Livelihoods of 4 million at risk
After South Sudan's secession in 2011, Sudan lost 75 percent of its oil revenues and 90 percent of its foreign exchange earnings, and traditional gold mining grew rapidly. The sector, which initially provided employment for 500,000 people, expanded to 2 million before the war and reached 4 million workers after the conflict broke out.
According to official data, Sudan's gold production peaked at 107 tons in 2017 before falling to 6.4 tons in 2023 with the war. Production exceeded 64 tons in 2024 and 70 tons last year. In the first half of this year, 36 tons of gold were extracted.
Minister and exporters voice concerns
Sudan's Finance Minister Jibril Ibrahim, during a meeting with European Parliament officials in Brussels, said they reject the sanctions on the gold sector. Ibrahim stressed that the private sector controls about 80 percent of gold mining, so the sanctions will directly affect a wide segment and lead to job losses.
Gold Exporters Association head Abdulmunim al-Siddiq said the European ban will negatively affect gold exports, encourage smuggling, and reduce income from official channels. Al-Siddiq stated that the restriction on mercury and cyanide supply will increase prices, raise production costs, and reduce producers' earnings as global prices fall. Al-Siddiq recalled that the gold price is the main factor in determining the Sudanese pound exchange rate.
UN warns of war economy
The United Nations warned on July 15 that the war economy in Sudan has become the main factor prolonging the conflict. The UN noted that the exploitation of natural resources such as gold and gum arabic finances military operations and exposes global supply chains to human rights risks.
Meanwhile, gum arabic was exempted as a humanitarian good under the US sanctions in the 1990s; this exemption had effectively continued despite changes in administration in Khartoum.
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