N e w s

Valery Rudakov, the head of the Russian State Treasury Gokhran and the Deputy Minister of Finance predicts that in 2001 Russia's miners will extract about 150 tons of gold, which is 10% more than last year. Mr. Rudakov also mentioned the removal of 5% gold export tax. "We are expecting the Government to take this decision util the end of the current year and it will be coming into force from January 1st 2002."

According to Mr. Rudakov, this will not in any way reflect on the gold market itself. World's gold market turnover is about 2 500 tons, of which Russia exports only 100. But the removal of export tax on gold is a serious step towards strengthening Russia's gold mining industry, believes the head of the Russian State Treasury.

Before the issue of the Decree on Import and Export of Precious Metals, it was only several banks that were allowed to import and export gold. It was necessary for gold producers to conduct all export operations through the banks. The price of the metal included the export tax. However, there was not tax involved if the gold was exported through Belarus and Kazakhstan. This lead profits gained by banks and losses accomplished by the gold producers as well as became one of the reasons of such legislative improvement.

Since September 2001 Gold producers themselves have the right to export their products.