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...

25 october 2021

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

Putin instructs the government to consider support measures for Russia’s jewelry industry

10 june 2020
Russian President Vladimir Putin instructed the government to consider the inclusion of the jewelry industry on the list of economic sectors most affected by the spread of coronavirus, the Finmarket news agency reported. This order, as it follows from the materials at the disposal of Interfax, was given after Sergey Sitnikov, the governor of the Kostroma Province appealed to the president.
It is said that in pursuance of the president’s order Andrei Belousov, First Deputy Prime Minister asked the Ministry of Finance, the Ministry of Economic Development and the Ministry of Industry and Trade to prepare their proposals on this issue by June 20. According to the Kostroma Province governor, if federal support measures will be provided to the jewelry industry this will allow Russian jewelers to protect their labor force, fulfill export contracts and retain overseas sales markets.
“He also notes the need to abolish excessive state control over the circulation of silver jewelry. Now silver products, despite their cheapness, are sold only at jewelry stores, which severely limits their sales,” Finmarket said.
The City of Kostroma positions itself as the jewelry capital of Russia: the Kostroma Province is home to more than 1,500 enterprises engaged in the jewelry business, which employ more than 8,500 people and produce 50% of gold and 60% of silver jewelry in Russia. According to the Assay Chamber, the Kostroma jewelry firms decreased their daily output in April this year 11 times as much compared with their March output.
Earlier, the Ministry of Finance initiated another measure to support domestic jewelers proposing to simplify the sale of jewelry. The ministry considers it necessary to increase the amount of retail purchases of jewelry using bank cards. Currently, buyers are requested to identify themselves in case a transaction is 100,000 rubles or more, while the Ministry of Finance wants to raise the threshold to 600,000 rubles. Raising the identification threshold is a logical step to stimulate online jewelry sales, the ministry said.
The softening of legislative requirements regarding the identification of jewelry online buyers will seriously support the jewelry market, said Sergey Barsukov, Deputy CEO at ALAROSA (MOEX: ALRS), whose statement was conveyed by the company’s spokesperson. The low identification threshold “slows down the development of online sales in Russia, which are the main driver of jewelry retail in the world,” he said. “Given that digital payments are already controlled by banks that have the necessary information about the cardholders, the requirement to identify jewelry buyers seems redundant in this case. The Finance Ministry recently proposed to raise the identification threshold to 600,000 rubles, which was enthusiastically supported by jewelers,” said Barsukov.