Akm.ru informs that the Central Bank of Russia may propose to abolish VAT for the precious metals turnover. According to the deputy chairman of the Bank’s board of directors Alexander Zaharov, this question should be discussed with the participants of the market and, with economic consequences taken into consideration, it may be possible to abolish VAT for precious metals turnover. He explained that VAT in precious metals market is a negative factor for its development. Among other negative factors restraining the development of jewellery sector are exhausted condition of equipment and backwardness of jewellery design. That’s why Russia exports raw materials mostly and not jewellery.

In 2002 Russia mined 171 tons of gold, exported 190 tons (with reserves taken into account). The level of domestic gold consumption is only 30%, most part of it is bought by banks.