Russian Bank Starts to Sell Investment DiamondsOctober 19, 2023
Sberbank, a prominent Russian financial institution, has initiated the direct sale of diamonds to clients subscribed to its premium service, “Sber First,” and users of Sber Private Banking.
According to the bank’s press service, quoted by Rough & Polished, initial purchasers have already acquired several precious gemstones for the purpose of crafting personal jewellery.
Sergey Shirokov, the director of Sberbank’s “Borrow and Save” division, expressed optimism about the growing interest of Russian customers in diamond acquisitions, attributed in part to the elimination of VAT (Value Added Tax).
“Recently, a proposal was submitted to the State Duma for the permanent removal of VAT when individuals purchase diamonds from banks. The Ministry of Finance of the Russian Federation has endorsed this proposal. I am confident that the removal of VAT will bolster our customers’ interest in this product,” Shirokov stated.
In addition to their appeal as jewellery components, diamonds also have the potential to serve as investments, akin to gold savings. If, following the purchase, the diamond is not retained in storage with the manufacturer, it will necessitate re-evaluation when resold.
In Russia, amendments to the Tax Code took effect on October 1, 2022, establishing a zero rate for individuals purchasing diamonds from banks.
Source: The Israeli Diamond Industry