Last week, Russia announced a temporary ban on the export of precious metals scrap. The Russian government hopes keeping scrap within its borders will enhance domestic refining operations.
This strategic move is intended to boost the country’s gold and silver supplies and direct those resources to domestic production. In effect, the Russian government hopes the ban will support domestic industries, enhance government revenues, and tighten control over the trade of valuable resources.
Recycled gold accounts for about 25 percent of the annual global supply, with mine output making up the difference. Scrap makes up about 18 percent of the annual silver supply.
The Russian export ban will run from Dec. 1 through May 31, 2025. It includes waste and scrap of precious metals or metals clad with precious metals, and other waste and scrap containing precious metals or precious metal compounds, along with waste and scrap of electrical and electronic products used to extract precious metals.
According to a statement released by the Russian government, “These measures enable increasing capacity utilization of Russian processing enterprises, including refineries, and attracting significant volumes of secondary raw materials containing precious metals into precious metals processing and production processes.“
The move is also expected to boost tax revenue by keeping the entire value chain—from raw materials to refined products—within the national economy.
The Russian government has imposed similar temporary bans in the past.
The ban could impact global gold and silver supplies and may leave some buyers scrambling to find new sources of scrap.
The Silver Academy noted how the move is part of a bigger geopolitical picture.
“By keeping these valuable resources within their borders, they’re strengthening their economic foundations and challenging the U.S. dollar’s dominance.”
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