Federal Law “On Precious Metals and Gem Stones» (No. 41-FZ of 26 March, 1998) 

 Document type: law 

 Number: 41-FZ 

 Adoption date: 26.03.1998 

Chapter I. General provisions 

 Article 1. Basic terms 
 The following basic terms are used in this Federal Law: 

 ‘Precious metals’ - gold, silver, platinum and platinum group metals (palladium, iridium, rhodium, ruthenium and os-mium). This list of precious metals may be changed by a Federal Law only. Precious metals may be in any condition, and any form, including native and affined form, as well as contained in raw materials, alloys, semi-finished products, industrial products, chemical compounds, jewellery and other goods, coins, scrap and production and consumption waste; 

 ‘Gem stones’ - natural diamonds, emeralds, rubies, sapphires and alexandrites, as well as natural pearls in a crude (natural) and worked form. Unique amber formations are also equalled with gem stones according to the procedure established by the Government of the Russian Federation. This list of gem stones may be changed by a Federal Law only; 

 ‘Valuables’ - precious metals and/or gem stones; 

 ‘Production of precious metals’ - extraction of precious metals from primary (ore), alluvial and technogenic deposits including production of concentrates and other intermediate products containing precious metals; 

 ‘Production of gem stones’ - extraction of gem stones from primary, alluvial and technogenic deposits, as well as sizing , prescreening and primary valuation of gem stones; 

 ‘Sizing and prescreening of gem stones’ - finishing stage of the enrichment process allowing - on the basis of ap-proved collections of standard samples and classifiers - to separate gem stones from extracted minerals, and to di-vide them into individual grades corresponding to those adopted in the world market; 

 ‘Primary valuation of gem stones’ - finishing stage of the enrichment process involving estimation of gem stones on the basis of price lists used for estimation of similar grades of minerals in the world market; 

 ‘Production of precious metals’ - extraction of precious metals from extracted complex ores, concentrates and other intermediate products containing precious metals, as well as from scrap and waste containing precious metals; refin-ing of precious metals; 

 ‘Refining of precious metals’ - process of cleaning of extracted precious metals of impurities and associated compo-nents, bringing precious metals to the quality level meeting state standards and specifications effective in the terri-tory of the Russian Federation, or international standards; 

 ‘Recuperation of gem stones’ - extraction of gem stones from tools and other industrial-use products worn out or removed from service for any other reasons, as well as from waste containing gem stones, with subsequent bringing (refining) them to the quality level meeting specifications or the diamond classifier requirements; 

 ‘Use of precious metals and gem stones’ - use of precious metals and gem stones for industrial, scientific and welfare purposes; 

 ‘Special accounting’ – keeping a register of organisations and individual entrepreneurs carrying out operations with precious metals and gem stones without collecting a fee for entering such organisations and individual entrepreneurs into the register; 

 ‘Operations with precious metals and gem stones’ mean: 
 - acts involving transfer of title and other property rights to precious metals and gem stones (circulation of pre-cious metals and gem stones) including their use as a pledge; 
 - change of the physical condition or the content of precious metals and gem stones in any substances and mate-rials at extraction, production of precious metals and gem stones, their subsequent processing, dressing and use; 
 - moving of precious metals and gem stones and products including transportation of precious metals and gem stones and products made thereof to places of storage, funds and reserves, as well as storage and exhibition of precious metals and gem stones; 
 - import of precious metals and gem stones, as well as products made thereof to the territory of the Russian Fed-eration and their export from the territory of the Russian Federation. 

Article 2. Title to precious metals and gem stones 

 1. The matters of possession, use and administration of subsoil plots containing precious metals and gem stones are within joint authority of the Russian Federation and constituent entities of the Russian Federation. 
 The ownership of the above assets is delimitated between the Russian Federation and constituent entities of the Russian Federation according to the Constitution of the Russian Federation, Federal Law "On Subsoil Assets", this Federal Law, and other Federal Laws regulating subsoil asset usage matters. 
 2. The Russian Federation holds sovereign rights to and exercises jurisdiction on subsoil plots of the continental shelf of the Russian Federation containing precious metals and gem stones according to the Constitution of the Russian Federation, the Russian Federation legislation on continental shelf, the Russian Federation legislation on subsoil assets, this Federal Law, international treaties of the Russian Federation and generally recognized princi-ples and standards of international law. 
 3. Subjects engaged in extraction of precious metals and gem stones specified in article 4 of this Federal Law may obtain subsoil plots containing precious metals and gem stones in use on the basis of licences for extraction of precious metals and gem stones issued according to the legislation of the Russian Federation on subsoil assets. 
 4. Precious metals and gem stones extracted from subsoil and other products and incomes legally gained at extrac-tion of precious metals and gem stones are considered property of subjects engaged in extraction of precious metals and gem stones unless otherwise established by licences for their extraction, delivery contracts, including contracts of deliveries of products for federal needs concluded with participation of these subjects, as well as in-ternational treaties of the Russian Federation. 
 The owner of illegally extracted precious metals and gem stones is the Russian Federation. 
 5. Affined precious metals in a standard form, as well as extracted or recuperated gem stones in an assorted form, when being sold by subjects engaged in their extraction and production shall be first of all offered to: 
 1) the authorised federal executive bodies - to replenish the State Fund of precious metals and gem stones of the Russian Federation; 
 2) the authorised executive bodies of constituent entities of the Russian Federation in the territories of which these precious metals and gem stones were extracted - to replenish respective public funds of precious metals and gem stones of constituent entities of the Russian Federation. 
 Bodies and organisations specified in subitems 1, 2 of this item shall enjoy a preemptive right of purchase of precious metals and gem stones only subject to previous (as regards precious metals, at least three months prior to the expected date of the purchase) conclusion of contracts of purchase of precious metals and gem stones with the subjects engaged in their extraction and production and an advancing (earnest money deposit) on ac-count of payments due from these bodies and organisations under such contracts. Failure of one or both parties to comply with the terms and conditions of the concluded contract of purchase and sale of precious metals and gem stones entails consequences established by article 21 of this Federal Law and Part One of the Civil Code of the Russian Federation. 
 6. Precious metals and gem stones obtained according to the procedure established by the legislation of the Rus-sian Federation may be owned by the federal government, constituent entities of the Russian Federation, mu-nicipal authorities, as well as bodies corporate and individuals. Owners of precious metals and gem stones shall exercise their right of ownership of precious metals and gem stones according to this Federal Law, the Civil Code of the Russian Federation and the Russian Federation Law "On Foreign Exchange Regulation and Control", and the right of ownership of gem stones specified in item 3 of article 22 of this Federal Law, according to the Civil Code of the Russian Federation and the federal legislation without restrictions established by the Russian Federation Law "On Foreign Exchange Regulation and Control", and this Federal Law. 
 The Russian Federation and constituent entities of the Russian Federation shall have a preemptive right of con-clusion of contracts for acquisition of extracted and produced precious metals and gem stones with subjects en-gaged in their extraction and production with a view of replenishment of the State Fund of precious metals and gem stones of the Russian Federation, the gold reserve of the Russian Federation, and public reserves of pre-cious metals and gem stones of constituent entities of the Russian Federation.

Article 3. Precious metal and gem stone exchanges 

 1. Precious metal and gem stone exchanges operating in the Russian Federation are intended for making by legal entities and individuals of transactions involving trading in: 
 - standard and small bars of affined precious metals; 
 - sized rough gem stones; 
 - certified dressed gem stones; 
 - native precious metals; 
 - articles made of precious metals and gem stones except for jewellery and other consumer goods made of precious metals and gem stones; 
 - semifinished products containing precious metals; 
 - coins containing precious metals. 
 2. The rules of activity of precious metal and gem stone exchanges are prescribed by the Government of the Rus-sian Federation on the basis of this Federal Law, the Russian Federation Law "On Foreign Exchange Regulation and Control", the Russian Federation Law "On Commodity Exchanges and Exchange Trade" and other Federal Laws.

Article 4. Subjects engaged in extraction and production of precious metals and gem stones 

 1. Extraction and production of precious metals, extraction of gem stones may be carried out solely by organisa-tions which obtained special permissions (licences) according to the procedure established by this Federal Law and other Federal Laws. 
 2. The Russian Federation, constituent entities of the Russian Federation and organisations created without partici-pation (direct or indirect) of foreign residents, stateless persons and foreign legal entities should hold a majority of votes taken into consideration at decision-making by management bodies of organisations extracting dia-monds in the territory of the Russian Federation. 
 3. Prospectors' extraction may be used at extraction of precious metals and gem stones, except for diamonds, by all organisations irrespective of their form of incorporation including prospectors' crews. Prospectors' extraction means a way of organisation of extraction of precious metals and gem stones involving departure of workers from their places of permanent residence for a period exceeding four months. In this case no funds at the ex-pense of the respective budget are allocated for creation and maintenance of social infrastructure facilities at the site of execution of the above works. The state encourages prospectors' extraction of precious metals and gem stones. 
 4. Only organisations entered in the list approved by the Government of the Russian Federation are allowed to carry out refining of precious metals. 
 5. Legal entities shall acquire the right to carry out extraction of precious metals and gem stones, or production of precious metals from the moment of reception of the respective licence. This right shall remain in force until ex-piry of the licence.

Chapter II. State funds and reserves of precious metals and gem stones 
 Article 5. Federal fund of reserve deposits of precious metals and gem stones 

 1. The federal fund of reserve deposits of precious metals and gem stones is formed with a view of regulating vol-umes of extraction of precious metals and gem stones, as well as with the aim of meeting long-term precious metal and gem stone requirements of the Russian Federation. 
 2. The federal fund of reserve deposits of precious metals and gem stones includes certain proved deposits of pre-cious metals and gem stones registered by governmental authorities and either assigned for temporary use or withdrawn from use. 
 3. The decision to include certain proved deposits into the federal fund of reserve deposits of precious metals and gem stones is taken by the President of the Russian Federation together with public authorities of constituent entities of the Russian Federation. 
 4. The federal fund of reserve deposits of precious metals and gem stones is administered by the Government of the Russian Federation according to the procedure set forth by the subsoil assets legislation of the Russian Fed-eration. The conditions of use of explored deposits of precious metals and gem stones included in the federal fund of reserve deposits of precious metals and gem stones are agreed with executive authorities of constituent entities of the Russian Federation in the territories of which such deposits are located.

Article 6. State Fund of precious metals and gem stones of the Russian Federation 

 1. The State Fund of precious metals and gem stones of the Russian Federation is a part of gold and foreign cur-rency reserves of the Russian Federation and is essentially the whole of precious metals, gem stones and prod-ucts made thereof received from sources listed in item 3 of this article. 
 The State Fund of precious metals and gem stones of the Russian Federation is intended for satisfying industrial, financial, scientific, welfare and other needs of the Russian Federation. Valuables included in the State Fund of precious metals and gem stones of the Russian Federation are federal property. 
 Office and industrial buildings, structures and premises used for storage, acceptance and maintenance of valu-ables of the State Fund of precious metals and gem stones of the Russian Federation are federal property and are not subject to alienation in any form including privatisation. Leasing out or other encumbrance of such facili-ties are allowed only by the decision of the Government of the Russian Federation. 
 The Regulations on the State Fund of precious metals and gem stones of the Russian Federation are approved by the Government of the Russian Federation. 
 2. Decisions on replenishment of and drawing on valuables of the State Fund of precious metals and gem stones of the Russian Federation are taken by the President of the Russian Federation and the Government of the Russian Federation. 
 3. The State Fund of precious metals and gem stones of the Russian Federation may be replenished by means of: 
 - precious metals and gem stones acquired from participants of the market of precious metals and gem stones at the expense of the federal budget funds, in particular under delivery contracts concluded by such participants with organisations carrying out refining of precious metals; 
 - unique nuggets of precious metals and unique gem stones acquired from subjects engaged in extraction of precious metals and gem stones at the expense of the federal budget funds; 
 - precious metals, gem stones, products made thereof and scrap of such products confiscated in compliance with the procedure established by law; 
 - articles made of precious metals and gem stones acquired from organisations engaged in buying up of the same; 
 - precious metals, gem stones, products made thereof and scrap of such products bought up from individuals; 
 - scrap and waste of precious metals and gem stones; 
 - buried treasures of precious metals and gem stones, products made thereof and scrap of such products; 
 - ownerless precious metals and gem stones, products made thereof and scrap of such products; 
 - precious metals and gem stones, products made thereof and scrap of such products transferred to the state under the right of succession or donation; 
 - state awards of the former USSR made of precious metals and gem stones intended for presentation to awarded persons (their legal representatives) according to the established procedure or to be surrendered for state storage according to the legislation of the Russian Federation on state awards; 
 - gifts made of precious metals and gem stones received by citizens of the Russian Federation in connection with state activity; 
 - precious metals and gem stones, as well as products made thereof included in the State Fund of precious metals and gem stones of the Russian Federation on other grounds established by the legislation of the Russian Federation. 
 4. Gem stones shall be acquired for the State Fund of precious metals and gem stones of the Russian Federation in an assorted form except for specific cases provided for by the legislation of the Russian Federation. 
 The procedure of exercising state control over quality of sizing and valuation of gem stones is established by the Government of the Russian Federation. 
 5. Funds allocated for acquisition of valuables for the State Fund of precious metals and gem stones of the Russian Federation shall be without fail stated on the expenditure side of the federal budget. 
 6. A special authorised federal executive body shall submit to the President of the Russian Federation and to the Government of the Russian Federation a report for the accounting year on replenishment and outlaying of valu-ables from the State Fund of precious metals and gem stones of the Russian Federation. Simultaneously with the report on implementation of the federal budget the Government of the Russian Federation shall submit to the State Duma of the Federal Assembly of the Russian Federation a report on replenishment and outlaying in the accounting year of valuables of the State Fund of precious metals and gem stones of the Russian Federation and summary indicators characterising general condition of the State Fund of precious metals and gem stones of the Russian Federation.

Article 7. Diamond Fund of the Russian Federation 

 1. The Diamond Fund of the Russian Federation is a part of the State Fund of precious metals and gem stones of the Russian Federation being essentially a collection of unique nuggets of precious metals and unique gem stones having a historical and an art value, as well as unique jewellery and other articles made of precious met-als and gem stones. 
 The Regulations on the Diamond Fund of the Russian Federation are approved by the President of the Russian Federation according to this Federal Law. 
 2. The Diamond Fund of the Russian Federation is indivisible, is the federal property and is not subject to alienation in any form or any other encumbrance, including tenancy. Valuables of the Diamond Fund of the Russian Fed-eration may be used exclusively with a view of exhibiting or scientific studying in the Russian Federation and be-yond the Russian Federation according to the procedure established by the Government of the Russian Federa-tion. 
 3. Valuables of the State Fund of precious metals and gem stones of the Russian Federation shall be enrolled in the Diamond Fund of the Russian Federation according to the decision of the Government of the Russian Federation. 
 A special authorised federal executive body is in charge of arranging a preliminary expert examination of valu-ables to be enrolled in the Diamond Fund of the Russian Federation, their accounting, storage and restoration, as well as exhibition of valuables of the Diamond Fund of the Russian Federation under the instructions of the Government of the Russian Federation.

Article 8. Gold Reserve of the Russian Federation 

 1. The gold reserve of the Russian Federation consisting of affined gold in bullions owned by the Federal Govern-ment and being a part of gold and foreign currency reserves of the Russian Federation, is intended for imple-mentation of the financial policy of the state and satisfying urgent requirements of the Russian Federation in emergency situations. 
 2. A part of the gold reserve of the Russian Federation deposited with the Central Bank of the Russian Federation is kept on its accounts. Decisions on outlaying of this part of the gold reserve of the Russian Federation shall be taken by the Central Bank of the Russian Federation according to the procedure agreed with the Government of the Russian Federation. The report on the status of this part of the gold reserve of the Russian Federation ac-counted for by the Central Bank of the Russian Federation shall be submitted by the Central Bank of the Russian Federation to the State Duma as a constituent part of the report of the Chairman of the Central Bank of the Rus-sian Federation on activity of the Central Bank of the Russian Federation. 
 3. The accounting of the part of the gold reserve of the Russian Federation kept in the State Fund of precious met-als and gem stones of the Russian Federation is maintained on accounts of a special authorised federal executive body. The decision on outlaying of the part of the gold reserve of the Russian Federation kept in the State Fund of precious metals and gem stones of the Russian Federation is taken according to article 23 of this Federal Law.

Article 9. Public funds of precious metals and gem stones of constituent entities of the Russian Federa-tion 

 1. Public funds of precious metals and gem stones of constituent entities of the Russian Federation may be estab-lished in coordination with the Government of the Russian Federation. Public funds of precious metals and gem stones of constituent entities of the Russian Federation are used according to decisions of public authorities of constituent entities of the Russian Federation and are the property of constituent entities of the Russian Federa-tion. 
 2. Public funds of precious metals and gem stones of constituent entities of the Russian Federation are formed at the expense of funds of budgets of constituent entities of the Russian Federation through acquisition of precious metals and gem stones from participants of the market of precious metals and gem stones taking into account world market prices according to the procedure established by the legislation of the Russian Federation, and are stated in a separate line in the budgets of constituent entities of the Russian Federation. Funds received by con-stituent entities of the Russian Federation from the federal budget in the form of transfers and subsidies may not be a source of formation of public funds of precious metals and gem stones of constituent entities of the Russian Federation. 
 3. Public funds of precious metals and gem stones of constituent entities of the Russian Federation shall be used according to the procedure established by public authorities of constituent entities of the Russian Federation ac-cording to the legislation of the Russian Federation. 
 4. The executive authorities of constituent entities of the Russian Federation shall annually submit the report on the status of public funds of precious metals and gem stones of constituent entities of the Russian Federation to the Government of the Russian Federation. 
 The condition of public funds of precious metals and gem stones of constituent entities of the Russian Federation may be audited by a special commission set up by the special authorised federal executive body in coordination with competent executive authorities of the constituent entity of the Russian Federation and with participation of representatives of these authorities. The procedure for carrying out such audits is established by the Govern-ment of the Russian Federation.

Chapter III. State regulation of relations in the field of geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circulation 
 Article 10. Purposes and ways of state regulation of relations in the field of geological survey and ex-ploration of deposits of precious metals and gem stones, their extraction, production, use and circula-tion 

 1. State regulation of relations in the field of geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circulation, as well as collection of scrap and waste of precious metals and gem stones is exercised with a view of implementation of state policy aimed at stimulation of extrac-tion and production of precious metals and gem stones, development of the market of these valuables and their rational use for the benefit of social and economic development of the Russian Federation and constituent enti-ties of the Russian Federation taking into account special properties of precious metals and gem stones. 
 2. The state regulation of these relations is carried out through: 
 - licencing of use of subsoil plots containing precious metals and gem stones; 
 - preemptive right of acquisition of extracted precious metals and gem stones for the State Fund of precious metals and gem stones of the Russian Federation, formation of the gold reserve of the Russian Federation and public funds of precious metals and gem stones of constituent entities of the Russian Federation; 
 - establishing requirements for accounting, storage, transportation of precious metals and gem stones and re-spective accounting documents, as well as for the procedure of making transactions with precious metals and gem stones; 
 - legal regulation of activity of organisations and individual entrepreneurs carrying out operations with pre-cious metals and gem stones in the internal and external markets; special accounting of such organisations and individual entrepreneurs; 
 - control of observance of the legislation of the Russian Federation in the field of geological survey and explo-ration of deposits of precious metals and gem stones, their extraction, production, use and circulation; 
 - licencing of certain kinds of activity in the field of production, use and circulation of precious metals and gem stones; 
 - determination by the President of the Russian Federation of the procedure for import and export of precious metals and gem stones; 
 - organisation of a system of state control of quality of sizing, classification and valuation of natural rough dia-monds extracted in the Russian Federation and imported to the Russian Federation; 
 - organisation of state control of prices for gem stones through approval of compulsory classifiers and price lists similar to those effective on the world market; 
 - special procedure of customs control of import of precious metals and gem stones, as well as products made thereof to the Russian Federation and their export from the Russian Federation; 
 - definition of the procedure for certification of precious metals, dressed gem stones and products made thereof; 
 - determination of the list of organisations engaged in refining of precious metals. 
 3. In the Russian Federation there is a state monopoly for assaying and marking of jewellery and other consumer goods made of precious metals with a state assay mark, as well as state monopoly for regulation of export of natural diamonds. 
 4. State regulation of relations in the field of geological survey and exploration of deposits of precious metals and gem stones, their extraction and production is carried out by governmental authorities of the Russian Federation, and public authorities of constituent entities of the Russian Federation. Powers of governmental authorities of the Russian Federation, public authorities of constituent entities of the Russian Federation at state regulation of such relations are established, accordingly, by this Federal Law, the legislation of the Russian Federation and the legislation of constituent entities of the Russian Federation.

Article 11. Powers of the Government of the Russian Federation on regulation of relations in the field of geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circulation 
 In compliance with this Federal Law and other Federal Laws the Government of the Russian Federation: 
 1) ensures implementation in the Russian Federation of a uniform state policy in the field of geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circulation, as well as collection of scrap and waste of precious metals and gem stones; 
 2) according to Federal Laws, approves plans of formation of the State Fund of precious metals and gem stones of the Russian Federation and of issue of its valuables, as well as the report on replenishment and outlaying of the fund valuables during the financial year; 
 3) defines the procedure for licencing of certain kinds of activity when using subsoil plots for geological survey and exploration of deposits of precious metals and gem stones and their extraction, collection of scrap and waste, as well as the procedure for licencing of certain kinds of activity involving production, use and circulation of pre-cious metals and gem stones, except for the procedure of issue to the banks of licences for carrying out bank transactions with precious metals and gem stones, other operations with precious metals and gem stones the procedure of which is established by the Central Bank of the Russian Federation according to Federal Laws; 
 4) establishes: 
 - the procedure for accounting, storage of precious metals and gem stones and products made thereof, as well as the respective reporting procedure; 
 - the procedure for state control of quality of sizing and evaluation of gem stones; 
 - the procedure for acquisition and transfer of valuables to the State Fund of precious metals and gem stones of the Russian Federation; 
 - the procedure for formation of the State Fund of precious metals and gem stones of the Russian Federation; 
 - the procedure for issue of valuables from the State Fund of precious metals and gem stones of the Russian Federation and the procedure of payment for the same; 
 - the procedure for auditing the condition of the State Fund of precious metals and gem stones of the Russian Federation and public funds of precious metals and gem stones of constituent entities of the Russian Fed-eration; 
 - the procedure for assaying articles made of precious metals and their marking with an assay mark; 
 - the list of works for which an assaying charge (assaying fee) is levied, and the amount of this charge (fee); 
 - the procedure for conducting economic and legal examination of draft international treaties of the Russian Federation and agreements of constituent entities of the Russian Federation with constituent or administra-tive-territorial entities of foreign states and foreign bodies corporate in the field of extraction, production, use and circulation of precious metals and gem stones; 
 5) exercises other powers assigned to it by the Constitution of the Russian Federation, Federal Laws and decrees of the President of the Russian Federation.

Article 12. Powers of public authorities of constituent entities of the Russian Federation in the field of geological survey and exploration of deposits of precious metals and gem stones, their extraction, pro-duction, use and circulation 

 The terms of reference of public authorities of constituent entities of the Russian Federation in the field of geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circula-tion include: 
 1) formation and use of public funds of precious metals and gem stones of constituent entities of the Russian Fed-eration; 
 2) acquisition of precious metals and gem stones for formation of public funds of precious metals and gem stones of constituent entities of the Russian Federation; 
 3) sale of precious metals and gem stones from public funds of precious metals and gem stones of constituent enti-ties of the Russian Federation in the internal and external markets according to the procedure established by the legislation of the Russian Federation and the President of the Russian Federation; 
 4) according to the Law of the Russian Federation "On Subsoil Assets", the legislation of the Russian Federation and the legislation of constituent entities of the Russian Federation, licencing of use of subsoil plots with the purpose of geological survey and exploration of deposits of precious metals and gem stones and their extraction, except for subsoil plots included in the federal fund of reserve deposits of precious metals and gem stones; 
 5) jointly with federal authorities, carrying out state control of activity of organisations in the field of geological sur-vey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circula-tion in respective territories (except for the federal assaying supervision); 
 6) other powers defined by agreements of delimitation of terms of reference and powers between governmental authorities of the Russian Federation and public authorities of constituent entities of the Russian Federation con-cluded according to the Constitution of the Russian Federation.

Article 13. Federal assaying supervision 

 1. Federal assaying supervision is carried out in order to protect the rights of consumers of jewellery and other consumer goods made of precious metals and gem stones, rights of manufacturers of these products against un-fair competition, as well as with the aim of protecting state interests. 
 2. Federal assaying supervision includes: 
 1) assaying, analysis and marking with a state assay mark of all jewellery and other consumer goods made of domestic-production precious metals, as well as such products imported to the Russian Federation for sale; 
 2) examination of impresses of state assay marks; 
 3) check analysis and technical expert appraisal of precious metals, products made thereof, as well as scrap and waste of precious metals; 
 4) expert examination and diagnostic of gem stones; 
 5) expert examination according to rulings of agencies in charge of preliminary investigation, investigators, public prosecutors, common law courts and arbitration courts; 
 6) expert examination of museum showpieces and archival items made of precious metals and gem stones, as well as control of preservation and safety of such items; 
 7) state certification of precious metals, gem stones and products made thereof; 
 8) special accounting of organisations, including military units and formations, as well as individual entrepre-neurs carrying out operations with precious metals and gem stones; 
 9) continuous state control over production, extraction, processing, use, storage and accounting of precious metals and gem stones in organisations specified by the Government of the Russian Federation; 
 10) periodic state control over production, extraction, processing, use, storage and accounting of precious met-als and gem stones in all organisations carrying out such activity, including military units and formations, as well as individual entrepreneurs carrying out operations with precious metals and gem stones. 
 3. The assaying charge (assaying fee) is levied for carrying out assaying, analyses and marking with a state assay mark of jewellery and other consumer goods made of precious metals, for conducting expert examinations, analyses of materials, expert examinations and diagnostics of gem stones. The amount of the assaying charge (assaying fee) is established by the Government of the Russian Federation. 
 4. A part of the assaying charge (assaying fee) is used for ensuring federal assay supervision activity, and the re-maining part of this charge (fee) is credited to the income of the federal budget. The amount of funds allocated for ensuring federal assay supervision activity is approved by the federal budget Federal Law.

Article 14. Certification of precious metals, gem stones and products made thereof 

 1. The legislation of Russian Federation stipulates certification of precious metals, gem stones and products made thereof. 
 Certification of precious metals, gem stones and products made thereof is actually a confirmation of their con-formity to the established qualitative and quantitative specifications and technical requirements. 
 2. To confirm such conformity, a certificate is issued, and in cases specified by certification systems the products are marked with a conformity mark. 
 3. The list of kinds of products, the certification form, as well as cases when these kinds of products come under certification are established by the Government of the Russian Federation. The organisation of such certification is assigned to a special authorised federal executive body.

Chapter IV. State licencing system 
 Article 15. Licencing in the field of geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circulation 

 1. In the Russian Federation geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, certain kinds of use and circulation are subject to licencing. 
 2. Licencing of use of subsoil plots containing precious metals and gem stones is performed according to the Rus-sian Federation Law "On Subsoil Assets" and other Federal Laws regulating subsoil assets use matters. 
 3. Organisations specified in article 4 of this Federal Law shall carry out extraction of precious metals and gem stones using own resources or under contracts made with other organisations. In case of extraction of precious metals and gem stones by organisations under a contract between them each of these organisations should have necessary licences for the kinds of activity stipulated by this Federal Law and other legislative acts. 
 4. This Federal Law and other Federal Laws prescribe licencing of the following kinds of activity in the field of pro-duction, use and circulation of precious metals and gem stones: 
 1) collection of scrap and waste of precious metals, their primary conversion and processing to obtain concen-trates and other intermediate products intended for refining; 
 2) buying up from individuals jewellery and other consumer goods made of precious metals and gem stones and scrap of such products; 
 3) production of precious metals; 
 4) recuperation of gem stones; 
 5) cutting and other dressing of gem stones, including cutting of rough diamonds into cut diamonds; 
 6) certification of precious metals and gem stones and products made thereof; 
 7) rendering precious metal and gem stone protection, storage and transportation services to legal entities; 
 8) wholesale and retail trade in jewellery made of precious metals and gem stones; 
 9) carrying out bank transactions with precious metals and gem stones; 
 10) activity of trade organisations engaged in purchasing and selling of precious metals and gem stones; 
 11) production and repair of jewellery. 
 Organisations and individual entrepreneurs carrying out operations with precious metals and gem stones may have one or several licences for activity in this area.

Article 16. Licence content 

 1. A licence should contain the following data: 
 - name of the body which issued the licence; 
 - name and location of the licence holder; 
 - grounds for issuing licence; 
 - kind of licensed activity; 
 - details of the place where the licensed activity shall be carried out; 
 - term of validity of the licence; 
 - territory on which the licensed activity is allowed; 
 - conditions to which the licence is subject; 
 - list of documents appended to the licence and being its integral parts. 
 The licence may be complemented with other data if it follows from the requirements of this Federal Law, the legislation of the Russian Federation and the legislation of constituent entities of the Russian Federation. 
 2. Blank forms of licences should be protected against forgery, should have a registration number and a registra-tion series. Acquisition, accounting and storage of these blank forms shall be carried out by state authorities in charge of licencing.

Article 17. Organizational support of the licencing system 

 1. Licencing of activity in the field of geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circulation is performed by executive authorities of the Russian Federation and executive authorities of constituent entities of the Russian Federation according to this Federal Law, the legislation of the Russian Federation and the legislation of constituent entities of the Russian Federation regulating respective kinds of activity. 
 2. The state subsoil assets fund federal management authority, its territorial subdivisions together with executive authorities of constituent entities of the Russian Federation, according to the subsoil assets legislation of the Russian Federation, carry out licencing of subsoil plots use with a view of geological survey of subsoil assets and exploration of deposits of precious metals and gem stones, as well as for the purpose of extraction of precious metals and gem stones. 
 3. Licencing of kinds of activity specified in subparagraphs 1 - 6, 8, 10, 11 of paragraph 4 of article 15 of this Fed-eral Law is carried out by a special authorised federal executive body. 
 4. The Central Bank of the Russian Federation, according to Federal Laws, carries out licencing of operations of banks and other credit institutions with precious metals and gem stones. 
 5. Law-enforcement authorities ensure licencing of activity involving protection of precious metals and gem stones when performing operations with such valuables.

Article 18. Licencing procedure 

 1. The procedure for licencing of certain kinds of activity in the field of production, use and circulation of precious metals and gem stones is established by the Government of the Russian Federation and executive authorities of constituent entities of the Russian Federation within their terms of reference defined by this Federal Law, the legislation of the Russian Federation and the legislation of constituent entities of the Russian Federation. 
 2. To obtain a licence the applicant should present to the state body authorised to issue licences an application for granting it a right to carry out a certain kind (kinds) of activity with precious metals and gem stones and enclose documents confirming: 
 1) the legal status of the subject of activity applied for and the place of its state registration; 
 2) a description of the territory where the activity applied for will be carried out, the arrangement of office and industrial buildings, structures, premises with respective documents, plans, schemes appended; 
 3) compliance of office and industrial buildings, structures, premises to standard requirements to preservation of precious metals and gem stones; 
 4) availability of the required professional level and financial possibilities for carrying out the activity applied for. 
 This list may be amended by the legislation of the Russian Federation and the legislation of constituent enti-ties of the Russian Federation. 
 3. The deadline for taking decision to issue a licence is established by the rules of licencing of respective kinds of activity, but cannot exceed thirty days from the date of submission of the application specified in item 2 of this article. The licence should be issued to the applicant within ten days from the date of taking the decision. 
 4. A licence may be denied if: 
 1) the applicant submitted false information about itself; 
 2) the applicant has not presented evidences of financial possibility, professional level, technical and techno-logical readiness required for carrying out the activity applied for; 
 3) the applicant has not presented documents confirming technical strength of industrial buildings, structures, premises, ensuring preservation of valuables. 
 A motivated decision denying the licence shall be sent to the applicant in writing within three days from the de-cision making date. This decision may be appealed against by the applicant in the court.

Article 19. Reasons for termination, suspension or restriction of validity of a licence 

 1. Validity of a licence for use of a subsoil plot with a view of geological survey and exploration of deposits and extraction of precious metals and gem stones may be terminated, suspended or restricted according to the Rus-sian Federation Law "On Subsoil Assets". 
 2. Validity of a licence for an activity in the field of extraction, production, use or circulation of precious metals and gem stones may be terminated, suspended or restricted by the governmental authority which issued the licence only in the following cases: 
 1) expiry of the term of validity of the licence; 
 2) emergence of a direct threat to the life or health of people working or living in the zone of impact of activity specified in the licence; 
 3) infringement of the licence terms and conditions; 
 4) violation by the licence holder of rules and regulations established by the legislation; 
 5) occurrence of emergencies; 
 6) liquidation of the organisation; 
 7) if the licence holder has not proceeded to the activity specified in the licence within the established time lim-its; 
 8) if the activity specified in the licence frustrates or makes impossible the fulfillment of government obliga-tions under international treaties of the Russian Federation. If government obligations under international treaties of the Russian Federation arise after the licence has been issued, the state shall indemnify for dam-ages caused by termination of the activity stated in the licence. 
 In other cases termination, suspension or restriction of validity of the licence is allowed as agreed with the li-cence holder or according to the court judgement. 
 3. The governmental authority which issued the licence shall notify the licence holder in writing on termination, suspension or restriction of validity of the licence. 
 The decision on termination, suspension or restriction of validity of the licence may be appealed against in court. If the court declares the decision illegitimate, it may establish the amount and the procedure of compensation for losses caused to the licence holder.

Chapter V. Use and circulation of precious metals and gem stones 
 Article 20. Disposition of extracted and produced precious metals and gem stones 

 1. The extracted and produced precious metals except for nuggets of precious metals after the required processing should be supplied for refining to organisations included in the list approved by the Government of the Russian Federation. The title to precious metals after the refining remains with their original owners unless otherwise provided for by the terms and conditions of agreements. The procedure of operation of organisations engaged in refining of precious metals, as well as the procedure of payment for services provided by these organisations and the timeframes of refining are established by the Government of the Russian Federation. 
 The procedure of handling mineral raw materials containing precious metals prior to refining is defined by the Government of the Russian Federation. 
 2. Precious metals and gem stones are subject to compulsory accounting by weight and quality at their extraction, production, use and circulation. The procedure of such accounting and reporting in the above spheres of activity including regular presentation by organisations producing precious metals of data on volumes of precious metals produced by them to state statistics bodies is established by the Government of the Russian Federation. 
 3. Affined precious metals, nuggets of precious metals not subject to refining, as well as gem stones shall be rec-ognized on the balance of their owners and may be objects of civil transactions in compliance with the rights of owners established by respective licences and contracts. 
 4. Unique nuggets of precious metals not subject to processing, as well as unique gem stones shall be offered at a negotiated price by the subjects engaged in their extraction for acquisition by way of priority to the special authorised federal executive body, and then to the authorised executive bodies of constituent entities of the Russian Federation in the territories of which these nuggets and gem stones were extracted. The negotiated price for unique nuggets of precious metals may not be lower than the cost of precious metals contained therein calculated at world market prices effective at the time of making the contract of purchase and sale of these nug-gets. The negotiated price of unique gem stones is established by expert commissions set up on principles of parity from representatives of the parties concerned. 
 The procedure and criteria of reference of nuggets of precious metals and gem stones to the category of unique ones are established by the Government of the Russian Federation. Nuggets of precious metals which are not re-ferred to the category of unique ones, and mineralogical collection specimens of these nuggets may be sold at negotiated prices by the subjects engaged in extraction of precious metals and gem stones according to the pro-cedure established by the legislation of the Russian Federation. 
 Nuggets of precious metals are appraised and certified by the special authorised federal executive body accord-ing to the procedure established by the Government of the Russian Federation. Nuggets which are not acquired for the State Fund of precious metals and gem stones of the Russian Federation shall be returned to the subjects engaged in their extraction or may be sold under commissions of such subjects engaged in extraction of pre-cious metals and gem stones, in particular through a public auction. 
 5. Precious metals and gem stones which have not been sold by way of priority to buyers listed in item 5 of article 2 of this Federal Law and item 4 of this article, including buyers which declined the offer to acquire unique nug-gets of precious metals, may be sold by the subjects engaged in their extraction and production to any legal or natural persons, in particular through precious metal and gem stone exchanges operating in the Russian Federa-tion, used in own production or as a subject of pledge or another financial obligation, as well as exported from the territory of the Russian Federation for sale on a foreign market according to the procedure established by the President of the Russian Federation. 
 The part of precious metals and gem stones unclaimed and unpaid under obligations may be used by their pro-prietors or owners in the internal and external markets according to the procedure established by the legislation of the Russian Federation. The part of precious metals and gem stones paid up but unclaimed within three months shall be transferred to the State Fund of precious metals and gem stones of the Russian Federation and may be claimed upon presentation of title. 
 6. Precious metals and gem stones obtained as a result of geological survey of subsoil assets shall be recognized and entered in the books by organisations carrying out these kinds of works following the procedure prescribed by the state subsoil assets fund federal management body.

Article 21. Procedure for payment for precious metals and gem stones 

 1. When carrying out transactions allowed by the legislation, the payment for precious metals shall be effected taking into account world market prices. When making such transactions, the payment for gem stones shall be effected at prices determined by an expert way on the basis of price lists similar to those effective on the world market, with allowance for market fluctuations of prices on the day of sale. The procedure of payment for pre-cious metals and gem stones shall be established by respective contracts. 
 2. Contracts with subjects engaged in extraction and production of precious metals and gem stones for deliveries of such valuables to the State Fund of precious metals and gem stones of the Russian Federation and public funds of precious metals and gem stones of constituent entities of the Russian Federation should be secured by an ad-vance payment (earnest money) on account of payments due under contracts. The volume of advance payments under contracts for delivery of precious metals and gem stones to such funds shall be established accordingly by the Government of the Russian Federation and public authorities of constituent entities of the Russian Federa-tion. 
 3. To stimulate investments into development of extraction and production of precious metals and gem stones, according to the legislation of the Russian Federation on securities, the Government of the Russian Federation may by its decision issue state securities denominated in weight of precious metals. 
 4. If the customer fails to comply with the terms and conditions of the contract stipulated by items 1 and 2 of this article, subjects engaged in extraction and production of precious metals and gem stones may retain the prod-ucts unpaid according to the contracts, and to petition an arbitration court according to the established proce-dure to seek protection of their property rights.

Article 22. Use and circulation of precious metals and gem stones, their scrap and waste 

 1. Precious metals and gem stones shall be used and circulated according to the procedure and subject to the terms and conditions established by this Federal Law, and the legislation of the Russian Federation. 
 2. Precious metals may be traded in the form of state securities (bonds) denominated in weight of precious metals or secured by precious metals and issued according to the procedure established by the Government of the Rus-sian Federation in compliance with the legislation. Liabilities under these securities (bonds) should be secured by the amount of precious metals equivalent to total liabilities of the issuer deposited for safekeeping according to the procedure defined by the Government of the Russian Federation. 
 3. Gem stones unsuitable for manufacturing of jewellery may be used as industrial and technological production without restrictions imposed by this Federal Law and the Russian Federation Law "On Foreign Exchange Regula-tion and Control". 
 Criteria and procedure of reference of gem stones to those unsuitable for manufacturing of jewellery are estab-lished by the Government of the Russian Federation. 
 4. Scrap and waste of precious metals and gem stones shall be collected in all organisations including military units and formations in which such scrap and waste are formed. Collected scrap and waste are subject to compulsory accounting and may be handled (processed) by organisations collecting them including military units and forma-tions for reclamation or sold by organisations holding respective licences, for further production and refining of precious metals and recuperation of gem stones. 
 Precious metals and gem stones extracted from scrap and waste, depending on their form and condition, shall be used and handled according to this Federal Law.

Article 23. Issue of valuables from the State Fund of precious metals and gem stones of the Russian Federation 

 1. Precious metals and gem stones enrolled in the State Fund of precious metals and gem stones of the Russian Federation shall be used according to the plans approved by the Government of the Russian Federation, in cost volumes established by the Federal Law on federal budget. These plans shall be approved annually and shall contain indication of specific purposes of issue of precious metals and gem stones. 
 2. Gold for carrying out operations in the external and internal markets, as well as other precious metals and gem stones above volumes established by the schedules of issue of precious metals and gem stones approved by the Government of the Russian Federation, and for purposes which have not been provided for by these schedules shall be issued from the State Fund of precious metals and gem stones of the Russian Federation only by the decision of the President of the Russian Federation on the basis of a motivated application of the Chairman of the Government of the Russian Federation subject to respective amendments to the Federal Law on the federal budget. 
 Such application should contain information on total amount and nomenclature of respective valuables stored in the State Fund of precious metals and gem stones of the Russian Federation at the moment of sending the ap-plication, on scheduled receipts of valuables, on availability of arrears of the state to the subjects engaged in ex-traction and production of precious metals and gem stones, about specific dates and purposes of outlaying pro-ceeds from prospective operations with additionally issued valuables, as well as about actual performance of previous decisions of the President of the Russian Federation on these matters. 
 3. Proceeds gained from sale of valuables of the State Fund of precious metals and gem stones of the Russian Fed-eration are subject to compulsory accounting on the revenue side of the federal budget.

Chapter VI. International and foreign trade activities of the Russian Federation in the field of extraction, productions, use and circulation of precious metals and gem stones 
 Article 24. International treaties of the Russian Federation, agreements of constituent entities of the Russian Federation in the field of extraction, productions, use and circulation of precious metals and gem stones 

 1. To secure economic, scientific, social and cultural interests of the Russian Federation, this Federal Law specifies particularities of conclusion of international treaties of the Russian Federation, as well as of agreements con-cluded in compliance with the Civil Procedure Law of the Russian Federation by constituent entities of the Rus-sian Federation with constituent entities or administrative-territorial units of foreign states and foreign legal enti-ties in the field of extraction, production, use and circulation of such valuables. 
 2. Draft international treaties of the Russian Federation and contracts of constituent entities of the Russian Federa-tion with constituent entities or administrative-territorial units of foreign states and foreign legal entities in the field of extraction, production, use and circulation of precious metals and gem stones shall be submitted to the Government of the Russian Federation. These draft treaties/contracts are subject to compulsory due diligence review performed by a special authorised federal executive body according to the procedure defined by the Gov-ernment of the Russian Federation. 
 3. International treaties of the Russian Federation in the field of extraction, production and use of precious metals and gem stones are subject to compulsory ratification according to the procedure established by the legislation of the Russian Federation. 
 4. Contracts of constituent entities of the Russian Federation with constituent entities or administrative-territorial units of foreign states and foreign legal entities in the field of extraction, production and use of precious metals and gem stones shall become effective upon their state registration according to the procedure established by the Government of the Russian Federation.

Article 25. Product sharing contracts (agreements) when carrying out geological survey, exploration and extraction of precious metals and gem stones with participation of Russian and foreign investors 

 1. The use of subsoil plots for geological survey, exploration and extraction of diamonds under product sharing contracts (agreements) is not stipulated. 
 2. Conclusion, execution and termination of product sharing contracts (agreements) at extraction of precious met-als and gem stones (except for diamonds) shall be carried out according to the Federal Law "On Product Sharing Agreements". 
 3. At performance of product sharing contracts (agreements) when carrying out geological survey, exploration and extraction of precious metals and gem stones (except for diamonds) restrictions of exercising of property right to extracted precious metals and gem stones stipulated by paragraph 5 of article 2 hereof shall not apply to the parties to such contracts (agreements).

Chapter VII. State control over geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circulation 
 Article 26. Purposes and kinds of state control over geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circulation 

 1. State control over geological survey and exploration of deposits of precious metals and gem stones, their extrac-tion, production, use and circulation is implemented with a view of ensuring: 
 1) compliance with the legislation of the Russian Federation in the field of geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circulation; 
 2) an efficient utilisation of natural resources of precious metals and gem stones; 
 3) application of environmentally friendly organizational and technological procedures of extraction and produc-tion of precious metals and gem stones; 
 4) safety of precious metals and gem stones, as well as products made thereof. 
 2. The following kinds of unified state control are carried out over geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circulation: 
 1) continuous control over extraction, production, processing, use, accounting and storage of precious metals and gem stones in organisations defined by the Government of the Russian Federation; 
 2) periodic control effected: 
 - in all organisations extracting, processing and using precious metals and gem stones, as well as buying up, taking in pledge jewellery and other consumer goods made of precious metals and gem stones, trading in these products or rendering intermediary services in trading the same, storing and exhibiting articles (products, materials) made of precious metals and gem stones, collecting and processing scrap and waste of precious metals and gem stones; 
 - in organisations, military units and formations using precious metals and gem stones, collecting, dress-ing and delivering to the State Fund of precious metals and gem stones of the Russian Federation scrap and waste of precious metals and gem stones;  
 - with respect to individual entrepreneurs carrying out operations with precious metals and gem stones; 
 3) federal assay supervision effected according to paragraph 2 of article of 13 of this Federal Law; 
 4) state control of import of precious metals and gem stones, as well as products made thereof to the Russian Federation and their export from the Russian Federation.

Article 27. Powers of bodies of state control over geological survey and exploration of deposits of pre-cious metals and gem stones, their extraction, production, use and circulation 

 1. State control over geological survey and exploration of deposits of precious metals and gem stones, their extrac-tion, production, use and circulation is carried out by governmental authorities of the Russian Federation and public authorities of constituent entities of the Russian Federation within their terms of reference established by this Federal Law and other Federal Laws. 
 2. Bodies of state control over geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circulation according to the purposes and kinds of control exercise the fol-lowing powers: 
 1) conduct audits, checks and inspections in all organisations - irrespective of their type of ownership - extract-ing, producing, processing, using precious metals and gem stones, as well as revisions of use of precious metals and gem stones by individual entrepreneurs making transactions with precious metals and gem stones; 
 2) establish forms of accounting and reporting at extraction, production, use and turnover of precious metals and gem stones, as well as the procedure of submission of such documents; 
 3) send to officers of inspected organisations binding instructions in writing requesting elimination of revealed infringements, as well as directions to suspend operations with precious metals and gem stones and prod-ucts made thereof upon revealing infringements creating conditions for inefficient outlaying of these valu-ables and/or preventing their proper preservation; 
 4) if during the audits, checks and inspections any signs of crimes or other material breaches of the legislation of the Russian Federation are revealed, transfer the respective materials to the law enforcement authorities. 
 3. Bodies of state control over geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circulation may not be independently engaged in a business activity, neither may they be founders of organisations carrying out a business activity except for organisations established to fa-cilitate functions of state bodies. 
 4. The President of the Russian Federation by his decision or the Government of the Russian Federation by its reso-lution on the instructions of the President of the Russian Federation may approve the procedure of interaction of bodies of state control over geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circulation and supervisory boards of Russian organisations extracting and/or selling natural diamonds in the Russian Federation and beyond the territory of the Russian Federation.

Article 28. Rights of officers of bodies of state control over geological survey and exploration of depos-its of precious metals and gem stones, their extraction, production, use and circulation 

 1. Authorised officers of bodies of state control over geological survey and exploration of deposits of precious met-als and gem stones, their extraction, production, use and circulation have the right: 
 1) with a view to fulfilling their duties, to attend without hindrance all organisations carrying out geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circulation upon presentation of service certificates and respective orders of competent authorities; 
 2) to inspect premises, work places, transport facilities, places of permanent or temporary storage of precious metals and gem stones, products made thereof used by organisations carrying out geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circulation, to examine such valuables, as well as to seal up such premises, work places, transport facilities, places of permanent or temporary storage in case of revealing any infringements of the established procedure of re-ception, outlaying, accounting and storage of such valuables, collection of their scrap and waste; 
 3) to carry out screening of persons whose activity is connected with direct access to precious metals and gem stones; 
 4) to request and to receive free of charge from officers of organisations under control, as well as from indi-vidual entrepreneurs making transactions with precious metals and gem stones, the respective documenta-tion, explanations in a written or oral form and statements on questions arising during the control; 
 5) to check accounting records, technical standards and other documents containing data on reception, outlay-ing, accounting, storage of precious metals and gem stones, their scrap and waste, to seal such documents if there is a danger of their loss or tampering with data contained therein until completion of the check and/or taking decision about withdrawal of such documents; 
 6) to perform in the controlled organisations sampling of products (materials) made of precious metals and gem stones, samples of articles made of precious metals and gem stones, sampling of scrap and waste of precious metals and gem stones for testing and analysing in laboratories of state control bodies or other laboratories; 
 7) to file claims in courts or arbitration courts in the interests of the state in case of revealing of infringements of the state property rights; 
 8) to take decisions on imposition of administrative sanctions in cases provided for by the administrative legis-lation. 
 2. Expenses of organisations and individual entrepreneurs incurred as a result of state control in the course of sam-pling, assaying, examination and analysis of products (articles, materials) made of precious metals and gem stones, as well as in the course of processing jewellery and other consumer goods made of precious metals and gem stones not conforming to the established requirements and unfit for sale shall not be reimbursed. 
 3. The special authorised federal executive body in coordination with other interested federal executive authorities shall establish the procedure of withdrawal for testing and analysis of samples of products (articles, materials) made of precious metals and gem stones, as well as sampling of raw materials and waste of precious metals and gem stones.

Chapter VIII. Responsibility of organisations and officers 
 Article 29. Ensuring protection of precious metals and gem stones, as well as products made thereof 

 1. Organisations engaged in geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circulation, and individual entrepreneurs making transactions with precious met-als and gem stones shall arrange for protection of such valuables, as well as products made thereof according to the requirements of the Russian Federation legislation. 
 For this purpose the abovementioned organisations and individual entrepreneurs should take measures to rein-force premises where operations with precious metals and gem stones are carried out, to outfit them with spe-cial protection, alert and communication equipment, to create own security services, and if it is impossible to do so, to conclude contracts for provision of services with organisations specialising in protection of facilities. 
 2. The list of officers allowed to store and bear special means, military, service and civil weapons when fulfilling tasks on protection of precious metals and gem stones, as well as the list of special means and weapons and the rules of their use are defined by the Government of the Russian Federation according to the legislation of the Russian Federation. 
 3. Transportation of precious metals and gem stones, as well as products made thereof shall be performed by air, water, railway and special motor transport fitted with respective equipment, accompanied by armed security guards. The equipment of special motor transport should ensure safety of the cargoes. The requirements to the equipment of special motor transport except for special motor transport of bank security and collection services are established by the special authorised federal executive body in coordination with law-enforcement authori-ties.

Article 30. Liability for infringement of the procedure for geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circulation 

 1. Persons offending the established procedure of geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circulation, shall bear criminal, administrative and civil li-ability according to the legislation of the Russian Federation. 
 2. Proceeds gained as a result of illegal extraction, production, use and circulation of precious metals and gem stones shall revert to the state as provided by the legislation of the Russian Federation. Precious metals and gem stones concerned are subject to compulsory delivery to the State Fund of precious metals and gem stones of the Russian Federation.

Article 31. Appealing against acts of bodies in charge of state regulation of relations in the field of geo-logical survey and exploration of deposits of precious metals and gem stones, their extraction, produc-tion, use and circulation, and their authorised officers 

 1. Individuals and legal entities may appeal to a court or an arbitration court against acts of bodies in charge of state regulation of relations in the field of geological survey and exploration of deposits of precious metals and gem stones, their extraction, production, use and circulation, state control in this area, as well as acts of their authorised officers according to the legislation of the Russian Federation. 
 2. Damages caused by wrongful acts of state bodies specified in this article and their authorised officers shall be reimbursed according to the procedure established by the Civil Procedure Law of the Russian Federation.

Chapter IX. Final provisions 
 Article 32. Procedure for enactment of this Federal Law 

 1. This Federal Law shall come into effect from the date of its official publication. 
 Until precious metal and gem stone exchanges stipulated by article of 3 of this Federal Law are established and begin operating, transactions with precious metals and gem stones shall be made according to the legislation of the Russian Federation. 
 The procedure for formation of the State Fund of precious metals and gem stones of the Russian Federation, of the gold reserve of the Russian Federation, the procedure of outlaying of valuables enrolled therein and the pro-cedure for reporting about replenishment of the State Fund of precious metals and gem stones of the Russian Federation, the gold reserve of the Russian Federation and outlaying of valuables enrolled therein established by articles 6, 8 and 23 of this Federal Law shall apply since 1 January, 1999. 
 Certification stipulated by article of 14 of this Federal Law shall be implemented as certification centres are es-tablished and receive respective licences. 
 2. Laws and other regulatory legal acts of the Russian Federation, as well as laws and other regulatory legal acts of constituent entities of the Russian Federation, contracts, concluded by governmental authorities of the Russian Federation with public authorities of constituent entities of the Russian Federation that were in effect in the terri-tory of the Russian Federation before enactment of this Federal Law shall apply to the extent they do not con-tradict this Federal Law. 
 3. It is hereby recommended to suggest to the President of the Russian Federation and to assign to the Govern-ment of the Russian Federation, to public authorities of constituent entities of the Russian Federation to bring their legal acts into compliance with this Federal Law within three months from the date of official publication of this Federal Law. 
 4. The Government of the Russian Federation shall within three months submit to the State Duma proposals to amend and supplement according to this Federal Law the Federal Laws approved earlier and to establish a re-sponsibility for infringement of this Federal Law.

President of the Russian Federation 
B.Yeltsin 
Moscow, Kremlin