Russian govt suggests specifying in Russian Criminal Code riskiest crimes related to gold mining, refining

MOSCOW. July 11 (Interfax) - The Russian Finance Ministry is implementing measures aimed at boosting the effectiveness of state control in the area of precious metals and stones.

The State Duma is considering a government-proposed bill that specifies in the Russian Criminal Code the riskiest types of crimes (illegal mining and illegal refining) and introduces punishments for them, in particular, economic ones, the ministry said.

To rule out the export from Russia of resources with false precious metal content characteristics, it is planned to use the Assay Chamber's laboratory, which will determine the actual precious metal content in exported batches.

"Unscrupulous users abuse current licenses for geological exploration, using them for hidden gold mining, evading payments to the budget, and also inflict irreparable environmental damage. The issue has been repeatedly raised by administrations of the constituent territories of the Russian Federation where gold is mined," the Finance Ministry said.

In 2021, the government submitted to the State Duma a bill toughening criminal liability for illegal refining. In particular, it made the fines for crimes envisaged for illegal turnover of precious metals and stones and violations of rules for turning them over to the state multiples of the value of the precious metals involved in the crime.

According to the current judicial practice, liability for illegal turnover of precious metals is limited to a suspended prison sentence and a fine, which is low in comparison to the profit, the memo attached to the bill said. Entrepreneurs resume their activities without problems after they pay the fine.

The State Duma passed the bill in the first reading in 2023 and has since been preparing it for the second reading.