Vladimir Pilyushin: The jewelry market is not stand-alone and moves by the same laws as other markets

Vladimir Pilyushin is editor-in-chief of Russian Jeweler, a leading magazine about the jewelry industry in Russia. He told Rough&Polished about his view on the evolution of the jewelry industry in Russia and touched upon some of its problems.

16 september 2024

Sarine’s David Block: Diamond Industry at Standstill Until Chinese Demand Returns

David Block is CEO of Israel’s Sarine Technologies and has served in the position since 2012. In this exclusive interview for Rough and Polished, Block gives his opinion on the leading issues affecting today’s diamond trade.

11 september 2024

Dr M'zée Fula Ngenge: Demand for considerable-sized diamonds stronger than ever

The African Diamond Council (ADC) chairperson Dr M'zée Fula Ngenge told Rough & Polished’s Mathew Nyaungwa in an exclusive interview that although overall global diamond prices have been somewhat soft, the demand for considerable-sized diamonds...

02 september 2024

Amplats sees prospects as a standalone company

Anglo has revealed its plans to demerge Anglo American Platinum (Amplats), which has operations in South Africa and Zimbabwe, to optimise shareholder value. Rough&Polished contacted Amplats to comment on this and other issues but was referred...

19 august 2024

WFDB President Yoram Dvash Remains Confident Despite Global Diamond Challenges

Yoram Dvash is President of the World Federation of Diamond Bourses (WFDB) having been elected in 2020. He found time in his busy schedule to speak to Rough&Polished about the state of the diamond industry around the world and some of the major...

12 august 2024

Russian projects in the Arctic under threat due to ship shortage

15 april 2024

The implementation of oil and gas projects in the Arctic zone of Russia has been threatened due to a critical shortage of transportation. If all the plans announced by the authorities are taken into account, at least 200 ice-class vessels are needed to be put in operation before 2035, and they will most likely have to be built domestically, according to an assessment of the consulting company Yakov and Partners (formerly McKinsey Russia).

Experts pointed out that it will most likely not be possible to purchase ice-class tankers and gas carriers abroad. Firstly, there are simply no such vessels on the market. There are 748 gas carriers in the world, but only 24 of them are suitable for transportation along the Northern Sea Route (NSR). At the same time, 22 already belong to Russia, and the other two belong to companies from countries considered unfriendly by Russia (the USA and Norway).

The global tanker fleet comprises 2,319 vessels, but only nine of them are capable of operating in the Arctic Ocean. Two of them are operated by Russian companies, and seven more are operated by Greek companies. Last fall, after tightening of US sanctions took effect, carriers from Greece began to abandon contracts with Russia.

Secondly, it will be difficult to order tankers and gas carriers in sufficient quantities at foreign shipyards. Ice-class vessels can be built by companies from South Korea, Japan and China. However, Chinese and South Korean shipyards are already loaded with orders up to 2028-2029, and it will not be possible to find a place there for the construction of hundreds of ships.

Analysts also note that Korean shipyards may refuse Russian orders under the threat of sanctions. Thus, South Korea's Hanwha Ocean has already terminated the contract for the construction of three gas carriers for the Arctic LNG-2 project, and the three already built have not been transferred to Russian ownership.

The construction of ships on their own is complicated by the lack of spare capacity, the need for import substitution of ship equipment and materials, as well as the lack of necessary competencies from a large number of shipyards domestically.

According to the authors of the review, taking into account the experience of China and South Korea, the development of the shipbuilding industry will take 10-15 years, but it is also necessary to greatly increase the level of financing and government support.

Sergey Grishunin, Managing Director of the NRA rating service, believes that with the help of oil and LNG transshipment schemes, Russian suppliers will be able to manage a fleet of 50-70 ice-class vessels. However, even the construction of 5-6 tankers per year is a difficult task, taking into account the current workload of shipbuilding capacities, lenta.ru notes.

Alex Shishlo for Rough&Polished