In a move described by major outlets as a step toward modernizing the Russian precious metals market, the government plans to simplify the process for selling investment gold to refining companies. Reports cited by News, referencing the Ministry of Finance, say the changes are designed to cut red tape and streamline access to metal feedstock for ingot production. The reforms would widen participation by allowing intermediaries to procure investment gold from individuals and institutions. Intermediaries could include firms licensed to purchase jewelry and other items made of precious metals or stones, as well as pawnshops. The Finance Ministry argues that widening the buyer base will boost supply, reduce transaction costs, and help refine products more efficiently, benefiting domestic industry, with VAT not applying to these specific operations. [Ministry of Finance]
Central to the plan is a shift toward digital documentation of quality assessments for bars and coins. The proposal would permit documentation on the quality of gold bars and coins to be prepared not only on paper but also in electronic form. The modernization aims to reduce delays and paperwork, enabling refinery organizations to purchase precious metals for investment purposes from Russian sellers through intermediaries without requiring a separate purchasing license. They would be able to work with a wider set of entities, including companies licensed to buy jewelry and other items made of precious metals or stones and pawnshops. The update is expected to streamline compliance workflows, support secure recordkeeping, and rely on existing oversight frameworks to ensure traceability from source to refined product. [Ministry of Finance]
From the Ministry of Finance’s perspective, these measures should enlarge the pool of supply sources essential for ingot production and, crucially, reduce the final cost of refined metal by removing VAT obligations on qualified transactions. The shift would not only invigorate domestic supply chains but also help stabilize input costs for manufacturers across sectors that rely on gold and other precious metals. It is worth noting that market observers have previously noted a sharp rise in gold prices, a backdrop that makes more efficient sourcing particularly valuable for Russian refiners. While the policy remains subject to regulatory implementation details, the intent is to create a simpler, faster, and more economical path from gold procurement to refined bars and coins. [Ministry of Finance]