MAGADAN, November 22 (RIA Novosti) - Russian President Vladimir Putin said Tuesday he supported a proposal to cut the VAT on purchases of gold ingots (up to 1 kg) by Russians.

"Tax cuts, primarily VAT, for Russian citizens who purchase precious metals and invest in them are worth considering," Putin said in response to a proposal made by Russia's Polyus gold mining company.

Polyus President Yevgeny Ivanov said gold could become an alternative investment tool for Russians together with the U.S. dollar and the euro. But, the 20% VAT on ingots purchases still stands in the way, he added.

Putin has also supported Ivanov's proposal to issue licenses for mining companies allowing them to work on foreign markets.