Russia – HRD Seminar Discuses Industry Issues, Deepens Ties

During a one day seminar held in Moscow, representatives of the Russian diamond industry and the Antwerp Diamond High Council (HRD) discussed current trends in the development of diamond distribution and sales networks.

Part of an ongoing cooperation agreement between Alrosa, the Diamond Chamber of Russia, the Russian Diamond Manufacturers' Association and the HRD, the July 6 seminar served as platform for free exchanges on major development trends and issues relating to the current global rough and polished diamonds market, government regulation and characteristics of the rough and polished markets in Russia and in Belgium.

Alrosa Vice President Serguei Oulin reviewed Russia’s 50-year involvement and experience in the global diamond market, adding that the miner plans to expand its mining operations in the Russian North West and Angola.

Victor Poryadin, head of Alrosa’s external affairs, expanded the topic saying the company plans to expand its presence in the world's major diamond centers. He gave an insight into the complexities of the Russian legislation (including the Soviet period) regulating operations with diamonds, and pending changes in view of the future Russian membership in the WTO, new and amended legislation and regulatory documents.

The focus of attention was on regulation of export of natural rough and polished diamonds, existing export quotas, debureaucratization and liberalization of the diamond sector, changes that are in line with the company's general perception of the future of Russia’s diamond industry.

Poryadin said however, that Alrosa has to face new challenges such as increasing competition, as the external and internal markets are merging. As an example he pointed out how the Indian and Israeli markets enhanced manufacturing efficiency and reduced costs.

As part of it efforts to reach out to new markets he revealed that Alrosa will expand and develop its representative offices abroad with a view to establishing a distribution network of its own.

HRD’s Marketing & PR Director Youri Steverlynck brought up an increasingly central issue in the market today - synthetic diamonds. In his presentation Steverlynck said a clear boundary between natural diamonds and synthetics have to be drawn.

He called on diamond producers to enhance consumer credibility in natural diamonds by working actively to create the environment where consumers feel confident about the purity and quality of diamonds and the establishment of chain of industry warranties.

Tatiana Pototskaya of the Smolensk Kristall, made an interesting presentation on alternative channels for polished sales looking into the potential of polished auction sales based on data accumulated and analyzed by their research unit.

The participants, which also included representatives of the Ministry of Foreign Affairs, the Gokhran, and Mark Van Bockstael, HRD’s Director of International Affairs & Trade, agreed to hold future Russia-Belgium seminars in the future in the framework of the Russia - HRD Co-operation Agreement.