The organization that oversees London’s gold trading blocked metal mined in Kyrgyzstan from entering the city’s market, dealing a blow to the central Asian nation’s bullion-dependent economy.
The London Bullion Market Association said Friday it had suspended Kyrgyzaltyn OJSC, Kyrgyzstan’s state-owned gold producer, from its list of acceptable refiners. The list sets standards in London’s gold market, one of the world’s biggest, and is regarded as an international benchmark. Traders and officials have said the move will likely restrict Kyrgyzaltyn from selling bars in other gold hubs including Switzerland and New York.