In light of the increasing deficit in Russia's federal budget, Sberbank has suggested that the government consider additional taxation on producers of precious and non-ferrous metals. With the prices of these metals surging to historically high levels, including gold reaching $5,626 per ounce at one point, the bank believes that increased taxes could fill the financial gap. Specifically, they estimate that taxing gold miners could yield approximately 1 trillion rubles, while the country’s largest nickel and palladium producer, Nornickel, might contribute around 200 billion rubles.

Sberbank's proposals come as projections show a significant shortfall in the budget, with calculations indicating a potential deficit of 7.3 trillion rubles by 2026, which would represent about 16% of the total budget. Internal government estimates reportedly forecast an even worse situation, suggesting that the deficit could rise to between 8 to 10 trillion rubles, which would indicate substantial challenges for Russia’s budgetary stability in the coming years.

The steep increase in metal prices, which have surged as much as 278% for silver and 88% for palladium in the past year, presents an unusual opportunity for the government to tap into resources that could mitigate the financial strain. However, relying on increased taxation from a volatile commodities market poses risks and may not be a sustainable solution for long-term budget health. This situation reflects the pressures facing the Russian economy amid fluctuating global markets and rising domestic challenges.