Part 2: KPCSC wants Russia to help end impasse on new definition of conflict diamonds

In the first installment of this two-part exclusive interview with Shamiso Mtisi, the coordinator of the Kimberley Process Civil Society Coalition (KPCSC), we focused on illegal diamond mining in the continent and where the contraband ends up...


Part 1: KPCSC gives insight into illegal diamond mining, trading in Africa

Although the diamond watchdog Kimberley Process (KP) prides itself for significantly reducing the flow of conflict goods since its establishment in 2003, the Kimberley Process Civil Society Coalition (KPCSC) alleged that illegal diamond...

18 october 2021

The jewelry industry in Russia needs to be upgraded in a serious way

Dina Nasyrova is a vice-president of the International Jewelry Exhibition-Congress J-1 recently hosted by the Atrium of Gostiny Dvor in Moscow. As a partner and the Muse of the famous jeweler Ilgiz Fazulzyanov, she actively participated in the preparation...

11 october 2021

Smiling Rocks, a philanthropic business model, inspires companies to work for betterment of the world

Zulu Ghevriya, the CEO and Co-Founder of Smiling Rocks, Founder of Vedantti Jewellery and Managing Director of Prism Group has been in the diamond and jewellery industry for over 20 years. Zulu started his business, Prism Group, as a natural diamond...

04 october 2021

Work hard and you will find success

Eduard Utkin, Director General of the “Jewellers’ Guild of Russia” Association, expert of the RF Chamber of Commerce and Industry’s Committee on Precious Metals and Precious Stones, told R&P about implementing the SIIS PMPS (State Integrated Information...

27 september 2021

ALROSA holds the first industry seminar with diamond banks and funds

12 december 2019

alrosa_logo.jpgALROSA held a specially organized meeting to discuss problems in the diamond industry, which was held on December 6.
The company said that the seminar was attended by ALROSA’s management, headed by Sergey Ivanov, the company’s CEO, the delegates of such organisations as the State Bank of India, NBF, ABN AMRO, and representatives of the DelGatto and Channel finance funds.
“Changes in the rough and polished diamond industry reflect global transformations, ranging from shifts in consumer behaviour to tighter financing requirements. As part of the workshop staged by the Company for the first time, we got together with representatives of the financial sector to discuss key factors behind the weaker diamond market environment in 2019 and steps that need to be taken to shore up market stability in the long term. During the meeting, an exchange of opinions and experiences as part of an open dialogue has generated many useful insights. With transparent operations of industry players being one of the key drivers behind market efficiency, we have decided to hold meetings with financial institutions on a regular basis,” said Sergey Ivanov, ALROSA’s CEO.
The company also said that the diamond market began to show signs of stabilization. Demand for jewelry in the world in the III quarter began to recover, mostly due to consumers from the US market.
The midstream also showed prospects for destocking.
However, a more accurate assessment of the industry can only be made based on sales volumes in the festive winter season, as they will show if the current upward trend is here to stay.
The banks recognised the efficiency of the measures ALROSA had taken to support the market, above all the reduction in diamond sales volumes. They believe that the “price over volume” strategy chosen by diamond producers has helped the cutting segment to “digest the overstocking” amid a funding crunch in the midstream segment in India, which is home to more than 90% of all cutters.
The participants also mentioned other support that ALROSA provided to its customers this year, including the gradual lowering of the mandatory amount of rough diamonds required to be bought during a trading session. The banks say that the flexible customer approach also enables the market, and notably the midstream, to continue operating in a tough environment.
Following the meeting, several key points were highlighted - the need for greater transparency in the industry in order to have access to bank financing, the need to introduce changes in the midstream, and the need for implementation of marketing initiatives, as market growth can only be driven by stronger consumer demand for diamond jewellery.

Victoria Quiri, Correspondent of the European Bureau, Rough&Polished, Strasbourg