Russia may experience delays in platinum group metals (PGMs) trading next year as bureaucratic red tape relating to the scrapping of the state monopoly over exports is yet to be removed.

Earlier this month, President Dmitry Medvedev passed a bill which will see state firm Almazjuvelirexport relinquish its control over the export of the metals and right to charge a fee for each transaction.

However, Sergei Gorny, the Deputy Chief Executive of the company, has claimed that the new legislation will take a significant period to be completely introduced, Reuters reported yesterday (22nd December).

He told the news provider: "In April, a law ending the monopoly of Almazjuvelirexport becomes effective, but a presidential decree regulating precious metals trade - which grants us a monopoly - remains in force.

"This decree has yet to be amended. The amendments will take at least a year of meticulous work."

Mr Gorny expressed his belief that the changes will not be incorporated by the stated April deadline as a number of ministries, the central bank and the Federal Security Service all have to rubber-stamp them.

He also warned that there could be a potential conflict between the new law and the decree in relation to Almsazjuvelirexport's holding of export licences which are set to expire between next summer and October 2009.

The body has recently renewed its palladium exporting licence with Norilsk Nickel, but Mr Gorny would not confirm when it expires, only stating that the producer would be able to cope.

"Norilsk will have problems, but it is big and will be able to overcome them. Delays may hit small producers and producers of concentrates containing these metals," he told Reuters.

Source:

INTERVIEW-UPDATE 1-Red tape may slow Russian PGM exports in 2009 (22/12/08)

http://www.reuters.com/article/metalsNews/idAFLM65315420081222?sp=true