ИСТИНА

Russia has been the second largest gold producer in the world for several years, producing about 360 tons of gold per year. At the same time, domestic gold consumption in the country remains at a mediocre level, which makes one of the country's largest mining industries dependent on the export opportunities of the precious metal. This creates one of the key risks for Russian gold mining, since in case of a shutdown of sales channels, companies will face gold overstocking and loss of operational liquidity. The year 2022 was a turning point for the Russian economy, and especially for the gold mining industry, since even before the introduction of the main rounds of sanctions, the rupture of export ties, that had been established for many decades, began. During the first months after the start of the Special Military Operation, export channels to Europe were shut down, which forced manufacturers and banks to look for alternative sales channels. At that moment, Russian President Vladimir Putin signed a law on the abolition of VAT on the purchase of gold for individuals, which, in conjunction with the downfall of ruble's exchange value, provoked a rush for the precious metal. According to various estimates, Russians purchased about 90-100 tons of gold in 2022, which is around 20 times higher than the results of 2021. In addition, a certain amount of gold was purchased by the Central Bank of the Russian Federation and Gokhran, as well as consumed by the jewelry industry. This volume of consumption, however, is objectively insufficient to cover the entire supply in the domestic market of the country. This situation threatens significant investments by the state and private business in Russian gold mining, which is one of the largest mining industries in the country. The systemic growth of Russian gold production in recent years has been largely ensured by the presence of stable export channels, the stability of which is currently debatable. Thus, understanding the dynamics and prospects of the domestic gold market in Russia in the realities of dynamic demand for gold both domestically and abroad is of critical importance for the sustainable development of precious metal mining in the country.