Russia proposes zero import tariffs on gemstones and jewelry clusters through 2035

Ministry targets input costs and domestic demand

Russia’s Ministry of Industry and Trade has drafted a strategy that would eliminate import duties on gemstones used as inserts in jewelry. The plan, which covers development of the precious metals sector through 2035, also calls for specialized jewelry manufacturing clusters with preferential tax treatment. Izvestia first reported the proposals, while the ministry’s press service said the document remains under interagency review.

The proposed tariff exemption is intended to reduce costs for Russian jewelry manufacturers that depend on imported stones. The ministry links weakening demand to lower household purchasing power, changing consumer preferences and higher prices for raw materials, imported equipment, components and consumables. These pressures have pushed the industry into what the draft describes as structural stagnation.

Zero duties could improve margins for processors and make domestically manufactured jewelry more competitive, but the draft does not specify the current tariff rates, eligible gemstone categories or an implementation date. Those details will determine which importers and manufacturers receive the largest benefit. Until the strategy completes government review, the measure remains a proposal rather than an approved change to customs policy.

Clusters planned in three production regions

The ministry is considering jewelry industrial clusters in the Kostroma region, Yakutia and the Urals. The proposed sites would offer preferential tax conditions and concentrate manufacturers, suppliers and processing capacity in established industry centers. The strategy also envisages support for Russian jewelry companies entering foreign markets and more favorable conditions for producers selling through online marketplaces.

A central policy objective is to restore jewelry manufacturing as a major source of demand for domestically mined precious metals. According to Federal Assay Chamber data cited by Vesti, jewelry absorbed 52% of all gold mined in Russia during 2011–2018. The ministry says the sector’s contribution to stable domestic precious-metals demand has since declined.

The contraction is already visible in retail figures. Kommersant reported that Russian jewelry sales fell 11% in the first half of 2026, while jewelry chains increased sales of gold bars as buyers showed greater interest in investment metal. Specialists cited in the report cautioned that retailer markups and bank spreads can make bars suitable only for a long investment horizon of at least five years.

Gemstone imports sit alongside diamond export policy

The import proposal comes as Russia adjusts a separate measure affecting diamond exports. The government postponed an 8% export duty on rough and partially processed diamonds from September 1, 2026, to March 1, 2027. According to Life, the duty will cover stones weighing from 0.45 to 10.8 carats and special-size diamonds above 10.8 carats. Together, the policies point to an effort to make inputs more accessible to domestic processors while managing outbound flows of unprocessed material, although the gemstone import exemption has not yet been approved.