IDB Put On Hold as Alrosa Turns Cold Shoulder

The forward looking Vybornov (above) is seeing his initiative harmed by his successor at Alrosa and dealing a blow to the entire diamond industry

The high hopes the industry had for wide-scale generic marketing took a blow this week as work on the International Diamond Board (IDB) was postponed due to continued delays by Alrosa, which has not confirmed its participation in the initiative. According to a somber letter signed by the IDB’s steering committee, the project won’t “achieve its full potential.”

Alrosa was expected to clarify its standing by December 10, according to the internal letter circulated among IDB participants, but has not done so.

The initiative, proposed and led by former Alrosa CEO Sergey Vybornov, was for the formation of a central industry body that will manage diamond jewelry generic advertising for the entire industry, financed by miners, manufacturers and others in the industry.

However, since Vybornov’s dismissal in July, his successor Fyodor Andreyev has not made a decision on the matter.

“Unfortunately, ALROSA has indicated that it is not yet in a position to [confirm their intention with regards to their participation in the IDB],” the steering committee wrote in the letter.

”We feel it is necessary to postpone any further developments until discussions with Alrosa are finally concluded. Alrosa has not given any indication as to when they will be in a position to reengage on the development of the IDB.”

The group is not completely giving up on Alrosa or the initiative, saying they “remain committed to the principle” and will “continue to liaise” with Alrosa in 2010.  The group has stated that Alrosa's participation is essential for the IDB to achieve its full potential.

“We also recognize that this will be disappointing, considering the time and effort that has been invested in this important and exciting industry initiative. We remain confident that the establishment of the IDB will provide considerable benefits to its participants and the industry as a whole and for this reason we choose to remain cautiously optimistic about its future and the participation of all,” the steering committee added.