Switzerland has demonstrated the precious metals industry’s softening stance toward Russia by importing gold from Russia for the first time since the Ukraine invasion.

Switzerland accepted more than three tons of gold from Russia in May, in the first shipment between the countries since February, according to data from the Swiss Federal Customs Administration

After the invasion of Ukraine, the London Bullion Market Association removed Russian fabricators from its accredited list, causing most refiners to refuse to accept new gold from Russia. These shipments comprise about 2% of the total gold accepted into Switzerland in the previous month, and its acceptance marks a change in the perception of Russian bullion.

So while fresh Russian gold is in essence banned from the London market, one of the world’s biggest, there are no rules forbidding other refiners from accepting Russian gold. Switzerland houses four major refiners who handle two thirds of the world’s gold, combined.

Because just about all of the gold shipped to Switzerland by Russia was registered by customs as being for refining or processing, one of the country’s refineries took it. However when queried, the four largest refineries, MKS PAMP SA, Metalor Technologies SA, Argor-Heraeus SA and Valcambi SA, all denied having taken the metal.

In March, right after the invasion of Ukraine, two major gold refineries refused to remelt Russian bars, despite being legally allowed to do so. Others said they would accept Russian gold refined before 2022, so long as no Russian person or entity would profit from it.

Some buyers however, still remain hesitant about Russian precious metals, including bars minted before the war, despite them still being legally tradable in western markets. In Paladium, this has created a dislocation between the spot prices in London and New York futures.

Switzerland has been importing palladium from Russia since April.