Russia braces for a surge of gold production

In a significant development for the Russian financial market, financial analyst Alexander Potavin of FG "Finam" predicts that the demand and supply of precious metal deposits in banks may increase from the current 1-2% to 2-3% over the next two years.

This anticipated growth is partly due to the recent changes in the tax landscape. The Ministry of Finance has prepared a bill to be submitted to the State Duma, which exempts operations with precious metals from Value Added Tax (VAT). This move, if passed, will allow for equal taxation of VAT on deposits in precious metals and other types of bank deposits.

The bill also includes provisions for the payment of interest on deposits in precious metals and loans in precious metals acquired from third parties. Anatoly Aksakov, chairman of the State Duma's financial market committee, noted that equalizing the tax burden on deposit products will increase their profitability and competitiveness.

However, not all industry experts are convinced about the widespread adoption of these products. Roman Zhukov, deputy chairman of the board for retail business at SMD Bank, thinks that these products may be too complex for the average retail client, requiring explanations and "a certain level of immersion in the topic". Yulia Suvorova, director of the legal department of the marketplace "Sravni", shares a similar view, believing that such products are unlikely to leave the niche class and will interest those "who consciously seeks protection from currency risks".

Despite these reservations, Maxim Moldorf, general director of the Moneymatika precious metals purchase service, agrees with the predicted growth. He notes that banks had no confidence in the profitability of such operations due to high tax obligations and additional costs.

Meanwhile, Rosfinmonitoring has started controlling operations with precious metals over 1 million rubles, adding another layer of regulation to these transactions.

As for investors, they are advised to exercise caution when buying gold in a pawn shop. It's essential to verify the authenticity of the gold and understand the terms and conditions of the transaction.

While there are no definitive answers yet on which banks will expand their offerings of gold deposit and loan products in Russia over the next two years due to the planned changes in taxation, one thing is clear: precious metals are increasingly becoming a viable option for deposits and loans in the Russian financial market.

In these times of economic turbulence, it's not surprising that capital seeks a reliable shelter. As the landscape of banking in Russia evolves, it will be interesting to see how investors and banks adapt to these changes. The corresponding amendments to the Tax Code of the Russian Federation, as reported, cite a document from a source in the financial bloc of the government, indicating a strong push towards this direction.