On 13.12.2007, ALROSA Vice-President Sergey Ulin was authorized to streamline the company’s sales. Here are some opinions on ALROSA’s sales policy expressed by Rough&Polished experts.
Valery Rudakov, Chairman of the Committee for Precious Metals and Gems of the Chamber of Commerce and Industry of the Russian Federation:
In 2000, when I was in charge of the State Depository for Precious Metals, I made my point clear: I am for any ALROSA policy, which brings maximum profit to the company. However, taking into account that this is a Russian company, its sales should be organized in a way not to ignore the interests of the Russian cutting industry. Vladimir Putin was correct saying we should stop selling only rough materials and start selling hi-tech products. Nevertheless, ALROSA must not sell in Russia cheaper than world prices. In the first place, the company should sort out its rough so that offered lots could meet the interests of large companies (such as Kristall of Smolensk) and the capabilities of medium and small business. Rough should be sold to domestic companies at market prices – there should be no advantages for anyone, all buyers of rough diamonds should be equal. It is necessary to meet this country’s interests, not those of private companies. ALROSA should not lose a single rouble due to the cutters’ interests. If it will create a selling stock – similar to that of De Beers in London by its scale and makeup – it would be useful for this country.
Ararat Evoyan, Vice-President of the Association of Russian Diamond Producers:
There is a client policy pursued by ALROSA and approved by the anti-monopoly committee. To put it in brief, I think that we should export only those rough diamonds, for which there is no demand in the domestic market. Today the price level in the domestic and foreign markets is flattened and sometimes we pay more than foreign buyers do for stones, which is abnormal.
Eugeny Bychkov, President of the Center for International Co-Operation of Producers and Consumers of Precious Metals, a former head of the State Committee of the Russian Federation on Noble Metals and Precious Stones:
ALROSA should determine its sales strategy, which is so far non-existent. Sergey Vybornov said in Antwerp that it would be non-profitable to develop diamond cutting in Russia, while his deputy said otherwise. My personal opinion is that we should support domestic manufacturers of polished diamonds. I am in favour of developing the Russian diamond cutting industry since we have everything to do that – both personnel and factories. However, ALROSA should not be engaged in manufacturing polished diamonds.
Valery Morozov, CEO of Ruiz Diamonds:
It seems to me that ALROSA has not so far defined its final sales strategy. There are many declarations made by ALROSA management, all of them quite well reasoned and correct. However, to what extent they will be implemented is another question. Last year saw similar well reasoned and correct declarations – may be now the process will start to develop in a positive way. Sergey Ulin, recently appointed responsible for ALROSA’s sales policy, is an experienced person, he has worked in this field for many years and knows everyone there. He is a diplomat and he will seek to reconcile the interests of various parties involved.
