Precious decree

The President canceled quotas on the export of diamonds and platinum group metals

Russia has abolished export quotas for precious metals and natural diamonds. As the press service of the country's president reported last Saturday, Vladimir Putin signed a decree “On improving state regulation of the import into and export from the Russian Federation of precious metals and precious stones,” which provides for the abolition of quotas on the export of diamonds and platinum group metals from Russia. In principle, the quotas were quite significant, so it is unlikely that significant changes will occur in the existing trade structure. However, they expired on December 31, and in the first days of this year, companies were not able to export precious metals and diamonds. In addition, small producers will now have direct access to exports - without the need to prove their right to it in government agencies.

The greatest dissatisfaction with the existence of quotas was expressed by industrial consumers of platinum group metals, especially palladium. In particular, as experts said, manufacturers of catalysts for cars refused to transfer production from expensive platinum (its market price currently exceeds $1,140 per troy ounce) to cheaper palladium (costs a little over $300 per ounce), fearing that the existence of quotas on palladium supplies from Russia may in the future lead to disruptions or interruptions in production. However, its main supplier to world markets, Norilsk Nickel (which also controls the largest palladium producer in the United States, Stillwater Mining Co), usually had no problems obtaining quotas for the export of palladium abroad. “We are used to working according to quotas,” a Norilsk Nickel representative admitted in a conversation with Vremya Novostey. At the same time, the company officially promises to comment on the abolition of quotas at the beginning of this week. After all, thanks to the decree of the Russian President, Nornickel’s competitors de facto gained access to exports.

In particular, for other producers of platinum group metals in Russia - CJSC Artel Prospectors Amur and Koryakgeoldobychi, which recently came under the control of the Renova group (they produce a total of 6-7 tons of platinum annually, which is 30-35% of total platinum production) -- a presidential decree can be a real gift. Several years ago, companies expressed dissatisfaction with the difficulties in obtaining quotas - delays and bureaucratic delays. They could not be reached for comment over the weekend.

The abolition of quotas, however, does not mean the abolition of licensing for the sale of platinum group metals and diamonds. Exports will still require a license from the Ministry of Economic Development and Trade, the Kremlin said. The presidential decree “On improving state regulation of the import into and export from the Russian Federation of precious metals and precious stones” defines only export parameters.

Anna LANDER