On May 19, 2004, there was the round table discussion devoted to Russian jewellery market and international cooperation held in Moscow. The event was organized in the context of III International Jewellery Moscow Show – watches, souvenirs and jewellery exhibition. The chairman of the Chamber of Industry and Commerce Committee of precious metals and gemstones V. Rudakov made a report at the meeting. He defined the topic of the discussion as a very important for Russian jewellery industry especially in the circumstances of its rapid development. Unfortunately, this growth rates exceed significantly the rates of buying ability in Russia. That’s why it is extremely important to develop international export relations.

Mr Rudakov mentioned as well some inner problems of Russian jewellery sector. From his point of view, it is very important to consolidate this industry within the country. Today producers, traders, public and exhibition companies are separated territorially within the industry and sometimes contradict each other. Thus, special rules are required in the field of jewellers’ behaviour in order to succeed in reaching international jewellery market.

According to Mr Rudakov, now almost all legislative problems are solved, nothing juridical hampers the development of jewellery industry. However, public organisations don’t work effectively enough. This is the reason for lack of honest competitiveness, for large amount of smuggling production transported to Russia illegally.

V. Rudakov informed that all the questions must be solved inside the country by public jewellery organisations. The Committee of Russia’s Chamber of Industry and Commerce tries to accomplish this task. The Committee started to prepare Russian jewellers meeting, which will take place in autumn 2004 and will be devoted to discussing these questions.

One more problem that needs to be discussed is VAT for precious metals buying. Special group is now working on certain amendments into tax code in order to help Russian jewellers to enter international market and to compete with foreign jewellers - their counterparts abroad don’t pay VAT for gold purchases.

At the end of his report Mr Rudakov expressed his hopes that all obstacles would be soon surmounted, all the problems would be solved, and Russian jewellers would become competitive in the world’s market.