MOSCOW, June 5: President Horis Yeltsin placed Russia's reserves of precious metals. Including gold and diamonds, under his personal control on Friday in a decree marking a return to state control, reports Reuter.

The decree, quoted by Itar-Tass news agency, ordered "enhanced state control over allocation and sales of repcclous metals and gems" with Immediate effect.

It gave the President sole authority over precious metals sales, Other than those outlined in government plans, and stripped the state precious metals committee of its powers to build up reserves on its own.

'In case such reserves are created, the right to their disposal belongs exclusively to the President,' the decree said.

It gave the government a deadline of December 1 to set limits on the amount of sales to be handled by the repecious metals committee in 1994.

A draft precious metals law yet to be approved by parliament calls for greater state control over the. extraction, production and sales of precious metals.

It urges the introduction of state-dictated prices in line with International market prices.

Russia account for up to a quarter of the world's rough diamond sales and is one of the world's biggest gold producers, with reserves put at 325 tonnes by the central bank at the end of March.