As it was published in “Precious Metals and Gemstones” Magazine, Mr Rudakov commented upon the problems of Russian jewellery sector: “Industrial policy of our State is not yet clearly organised and therefore realised. First of all, the problem is that the tax system in Russia is far from being perfect, and it is not high rate of taxes but their large amount and possibility to misinterpret some law positions that is imperfect. Frequent changes and amendments confuse enterprises and make the prospect of a deposit development extremely insecure.

The second main problem of the industry is our legislative system imperfectness in the field of natural resources. Mining companies, and gold mining in particular, cannot develop without anticipating new deposits searching and exploration. Unfortunately, our gold mining industry still works mainly on the basis of the deposits that were discovered during Soviet Union.

The reason is that our State has no opportunity for investing money into new deposit searching. Our economics is in the process of changing and the State cannot be required to finance resources exploration under the conditions of the market relationship development in the gold mining sector.

However, despite all the disadvantages and difficulties, in course of the recent four years the sector has been developing dynamically. Annual increase in gold mining volume amounts to 10%.”