Russia's Finance Ministry has proposed introducing export duties on diamond exports, according to reports from IFX. This development signals a potential shift in the country's approach to regulating its diamond export industry.

Policy Proposal Details

The proposal from Russia's Finance Ministry would establish export duties specifically targeting diamond exports. While the specific rates and implementation timeline have not been disclosed in the available information, this represents a notable policy consideration for one of the world's significant diamond-producing nations.

Industry Implications

The introduction of export duties on diamonds could have implications for Russia's position in the global diamond market. Such duties typically affect export competitiveness and can influence trade flows and pricing structures within the industry.

Current Status

The proposal remains under consideration by Russia's Finance Ministry. Further details regarding the specific duty rates, implementation schedule, and scope of the proposed export duties have not been made available at this time.

The Ministry of Finance has announced that deposits under the Special Deposit Scheme (SDS) for non-government provident, superannuation, and gratuity funds will carry an interest rate of 7.1% for the period from January 1 to March 31, 2026. The notification was issued by the Department of Economic Affairs, referencing an earlier notification from 1975, and signed by Vyasan R, Joint Secretary of the Ministry of Finance.

Special Deposit Scheme Overview

The Special Deposit Scheme allows non-government organisations and private companies to invest funds accumulated under various employee benefit schemes with the government. These schemes are designed to ensure secure and regulated investment of retirement and employee benefit funds while providing a fixed rate of interest. Under the SDS, these funds can be invested in government securities for assured returns, offering a risk-free avenue compared to market-linked investments.

Covered Fund Types

The scheme encompasses three primary categories of employee benefit funds, each serving distinct purposes in retirement and employment benefit planning.

Provident Fund (PF) operates as a retirement savings scheme where employees contribute a portion of their salary, matched by employer contributions, to accumulate funds for post-retirement use. Superannuation Fund functions as an employer-managed retirement benefit scheme that pays employees a lump sum or pension upon retirement. Gratuity Fund serves as a statutory benefit under the Payment of Gratuity Act, providing a lump sum to employees on resignation, retirement, or death after completing a minimum period of service.

Investment Framework

The government fixes interest rates quarterly under the SDS framework, ensuring regular review and adjustment of returns. The current 7.1% rate represents the applicable rate for the first quarter of 2026, providing certainty for fund managers and beneficiaries planning their investment strategies. This quarterly review mechanism allows the government to align rates with prevailing economic conditions while maintaining the scheme's attractiveness as a secure investment option for employee benefit funds.