vlad.tribnet.com / Issue #148 / Business / Reading article...

Russia's metals industry is flailing, thanks to federal laws that make precious and semi-precious metals unattractive to buy, or just totally unavailable.

Though Primorye banks announced last month that they would begin selling gold bullion over the counter, the decision has been delayed at least until mid-September. According to DalRybBank deputy general director Vyacheslav Taran, the main problem is a federal tax, which significantly increases the price of gold.

Taran also said that the domestic gold market is stagnant because most Russians convert their rubles to dollars, instead of using gold for financial security.

The semi-precious metals market in Primorye is also at a standstill. Despite a recent krai administration press release, Russia's largest lead-zinc manufacturer DalPolymetall, is still unable to export over 40,000 tons of silver and other non-ferrous metals.

In July President Yeltsin said some manufacturers would be allowed to sell abroad, but DalPolymetall was not on the list, and the company must still get permission to export its stocks. The company had previously lined up a deal to sell the metals to Swiss company Glenkor.