A debate is heating up in Russia around the proposal to introduce mandatory sales standards gold and other precious metals on the stock exchange. The Union of Gold Miners sent an appeal to the government with a request to exclude precious metals from the list of goods subject to the new rules.
The initiative proposed by the State Duma suggests that companies should sell up to 25% of mined gold through the exchange. However, according to the Union of Gold Miners, this will create an excessive burden on the industry. The head of the organization, Sergei Kashuba, called this approach “irrational” and warned of possible negative consequences.
1. Pricing. Gold already has a transparent pricing system based on global and domestic spot prices. New regulations could distort market indicators, leading to lower prices.
2. Export losses. Mandatory sale of part of the gold on the domestic market will reduce export volumes, and therefore foreign exchange earnings.
3. Conflict with Gokhran. Legislation gives Gokhran priority right to purchase everything produced gold, and new rules may disrupt this mechanism.
In 2024, the volume of gold transactions on the Moscow Exchange amounted to 123.3 tons, which is approximately equal to a third of total production. At the same time, gold production in Russia reached 325 tons, plus 25 tons were obtained from recycled materials.
Deputy Prime Minister Dmitry Grigorenko instructed the Ministry of Finance to study the arguments of gold miners and present their proposals. The bill has already been adopted in the first reading, but the final decision will depend on the position of the government.
Experts note that the new regulations, if adopted, could seriously affect industry profitability and tax revenues. In the meantime, gold miners are hoping for a revision of the initiative.
Source: @zolteh
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