Yesterday department of government information claimed that chairman of the Russian Federation government Mikhail Kasyanov signed resolution about abolishment of 6,5% export duty to silver.
EXPORT OF RUSSIAN SILVER HAS BEEN LEGALIZED Yesterday department of government information claimed that chairman of the Russian Federation government Mikhail Kasyanov signed resolution about abolishment of 6,5% export duty to silver. This decision is first of all convenient for silver producers and in future it may lead to increase of silver production in Russia. In March State Duma adopted an appeal to the chairman of government in which it proposed to abolish export duty to silver. Letters with the same request were also sent by Russian Gold Producers Union and Polymetal Inter-regional Research and Production Association (which develops Ducat and Lunnoye deposits with designed output capacity 350-400 and 120 tons a year). According to delegates" data, in 2001 90% of refined silver in bullions produced in Russia were transported to countries - members of the Customs Union without paying duties. Gold Producers Union informs that in 2001 Russia exported about 462 tons of silver. Only 61 out of them were transported with paying export duty and all the rest under "grey" circuits. Banks also included extra 6,5% in the price of the metal. Moreover, as delegates claim, within last decade silver production in Russia decreased by 2,5 times. It should be mentioned that volume of produced silver in Russia is confidential. But in accordance with some evaluations amount of mined silver made up 620-640 tons and inner consumption was not more than 12-14% of it. It means that volume of "grey" export can even exceed Gold Producers Union information. Yuri Burlakov, head of MDM-bank precious metal department says that this measure will bring the market to normal state and it will have positive influence upon metal producers as they will not have to apply money-consuming circuits involving countries - members of the Customs Union. Abolishment of export duty "in a few years perspective can influence total amount of silver production; investment projects will be reconsidered because of their new profitability". Dmitry Parmeshin, head of Alfa-bank precious metal department, says that due to duty abolishment producers will get more circulating assets that can be invested into business development. He also thinks that banks' revenue will decrease and they will make money only on bank margin.
source: "Kommersant", 20.08.02, "Export of Russian silver has been legalized", Alexander Semenov