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01 august 2016

lena_fyodorova_xx.jpgLena Fyodorova, Director of Olonkholand Complex Design Company told Rough&Polished about the possibilities arising with the creation of the Diamond and Jewellery Centre in Yakutsk within the framework of the Olonkholand Complex.

Please tell our readers about the Olonkholand Project.

The construction of the Diamond and Jewellery Centre in Yakutsk to be located in Residential Quarter 67 was coordinated with the government of Yakutia back in 2008. The proposal about the construction of the Diamond and Jewellery Centre in Yakutsk was voiced by the cutters and jewelers as far back as in 2004.

That is why the concept of the Olonkholand Complex (under Decree of the President of the Republic of Sakha (Yakutia) No. 1904 dated 26.04.2010) initially included the establishment of the Diamond and Jewellery Centre that was also naturally complemented by the Diamond Bourse proposed by the authors to be set up in Yakutsk. In this case, the Project could be self-sustained and comply with the requirements of the Law on the Territories of Priority Social and Economic Development (TPSED) with a possible establishment of the ‘Olonkholand’ TPSED comprising the Diamond Bourse for trading in precious stones and metals and jewellery, including rough and polished diamonds.

However, due to economic considerations and a number of other factors, ALROSA took the decision to set up the Diamond Bourse in Vladivostok. Thus, the cutting&polishing units and the jewellery manufacturers of the diamond- and gold mining industries of Yakitia and Russia turned out to be financially unsustainable and have no potential to attract investments for the development of the TPSED.

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The Olonkholand Complex concept

What was behind the decision to create the Diamond Centre in Yakutsk?

Yakutia is establishing a TPSED, called ‘Kangalassy Industrial Park’ and the municipal authorities show their interest in complementing it with a diamond and jewellery component. There is a number of proposals – to create a cutting&polishing and jewellery cluster in Kangalassy, Markhа or Yakutsk.  

The polished diamond and jewellery manufacturers made their choice in favour of creating it in Yakutsk – within the Olonkholand Complex being set up. Their opinion was included as the recommendations to the Resolution of the 1st Business Forum devoted to the 25th anniversary of the Tuymaada Diamond JSC and the cutting&polishing industry in Yakutia that was held in Yakutsk on April 29, 2016.

Cutters and jewelers propose two options:

- To increase the area of the ‘Kangalassy Industrial Park’ TPSED through adding the territory of the National Innovation ‘Olonkholand’ Complex of the Republic of Sakha (Yakutia) including the ‘Yakutia Diamond Centre’ located in Residential Quarter 67 in Yakutsk to make a shared center for the cutting&polishing and jewellery units of the Republic of Sakha (Yakutia) having a common storehouse, manufacturing and trading sites, office building and the related infrastructure;

- To create an independent ‘Olonkholand’ TPSED in Residential Quarters 67 and 68 in Yakutsk as a shared center for the cutting&polishing and jewellery units of the Republic of Sakha (Yakutia) and the ‘Yakutia Diamond Centre’ having a common storehouse, manufacturing and trading sites, office building and the related infrastructure.

What is proposed to be built as part of the Yakutia Diamond Centre Project?

The Yakutia Diamond Centre is proposed to be a 30 sq. km building for cutting&polishing, jewellery companies, specialized customs point and gold miners’ offices. It is possible to locate the ALROSA’s Yakutsk unit for the rough diamond trade here because it does not have its own premises and rents the buildings. It will also have the floor-space for jewellery stores, banks, cafes and restaurants. Retail chains and the restaurant will be on the ground floor. The banks, offices and manufacturing facilities will be located on the upper floors.

The ground for the Diamond Centre in Residential Quarter 67 is in a very convenient place – in the historical zone of Yakutsk on the shore of the sacred Lake Saysary and is a short stroll away from the North-Eastern Federal University named after M. K. Ammosov, a source of manpower for cutting&polishing and jewellery industries. Gradually, the components of the Complex will be built on the area of 47 hectares: IT-Park, ‘Olonkho’ International Centre with theatres, museums, exhibition and congress halls and facilities, car parks, recreation park area and innovation settlement with all the social infrastructure – school, kindergarten and sports-grounds. Thanks to the IT-Park, the Complex will be fitted with the electronics and advanced technologies. All the buildings will be connected via heated galleries to provide comfortable environment for residents in cold winter and hot summer.

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The concept model of one of the would-be facilities of the Olonkholand Project in Yakutsk (in Residential Quarter 67). Designer: Vittorio Grassi (Italy).

In general, the people living in the Complex will be creating the intellectual and jewellery products, including the polished diamonds; the polished manufacture does not require great transport сosts, no need to bring heavy and large equipment, roughs, raw and other materials. Creative skills, craftsmanship and source of inspiration – the age-old traditions - will never vanish. In the Diamond and Jewellery Center, comfortable conditions will be maintained for the manufacturers, and the specialized customs point and the related infrastructure will be built up as well. 

At large, it was planned to construct the IT- Park, centres of the registration, patenting and commercialization of the intellectual property, innovation dwelling houses for the residents of the Complex, a school, kindergarten, gyms, etc. This Complex will be a growth area for the creative economy of all the Far East of the Russian Federation. You can find more details about ‘Olonkholand’ Project at olonkholand.ru.

A. S. Nikolayev, CEO of ‘CC SIR’, one of the participants in the Forum, has shown his willingness to finance their part of the Diamond Centre construction. The total value of the construction is about US$30 mln (US$900-1 000 per 1 sq. m). All those members or investors interested in the Centre can take part in this Project.

Please tell us about the Business Forum held on April 29, 2016 in Yakutsk.

Business Forum ‘Best Practices, Problems and Prospects of the Development of the Cutting&Polishing and Jewellery Units of the Republic of Sakha (Yakutia) was devoted to the 25th anniversary of the Tuymaada Diamond JSC and the cutting&polishing industry in Yakutia. The Forum was organized by the ‘G. P. Yakovlev Foundation’, Chamber of Commerce and Industry of the Republic of Sakha (Yakutia), Guild of the Polished Diamond and Jewellery Manufacturers of the Republic of Sakha (Yakutia), North-Eastern Federal University Named after M. K. Ammosov and Foundation ‘Olonkholand Complex Design Company’. Support was given by the Ministry of Industry of the Republic of Sakha (Yakutia), Ministry of vocational Education, Training and Placement of Cadres of the Republic of Sakha (Yakutia).

Over 150 experts, students, lecturers and veterans of the Yakutia’s cutting&polishing and jewellery industries took part in the discussions of the challenges facing the Republic’s cutting&polishing and jewellery industries. Proceedings of the 1st Business Forum ‘Best Practices, Problems and Prospects of the Development of the Cutting&Polishing and Jewellery Units of the Republic of Sakha (Yakutia)’ were published.

The Forum theme and prospects raised and considered at the plenary sessions and discussions have both practical and theoretical importance for the scientific investigations in the cutting&polising and jewellery industries.

The implementation of the Olonkholand Project with the Diamond Centre will require not only the significant financing but also taking decisions at the level of the Republic of Sakha (Yakutia) and the Russian Federation. What steps are you taking in this regard?

We work in various lines and in co-operation with various governmental structures. For example, on the initiative of the Chamber of Commerce and Industry of the Republic of Sakha (Yakutia) in team with the Foundation ‘Olonkholand Complex Design Company’, the meeting was held at the Chamber of Commerce and Industry of the Russian Federation and the parliamentary hearings in the State Assembly (Il Tumen) of the Republic of Sakha (Yakutia).

The participants in these events propose, in particular, as follows:

1) To take actions for the state stimulation in customs regulation of the precious metals market;

2) To provide a package of proposals to make changes and additions to the legislation of the Russian Federation in the sphere of taxation, use of subsurface resources, turnover of precious metals, precious and semi-precious stones and products;

3) To develop the draft of the federal target-oriented programme of the state support and development of the cutting&polishing and jewellery complex with account of the proposals considered by the Committee at the extended session on 30.05.2016, including such proposals as follows:

- To increase the area of the ‘Kangalassy Industrial Park’ TPSED through including the territory of the National Innovation ‘Olonkholand’ Complex of the Republic of Sakha (Yakutia) with the ‘Yakutia Diamond Centre’ located in Residential Quarter 67 to make a shared center for the cutting&polishing and jewellery units of the Republic of Sakha (Yakutia) having a common storehouse, manufacturing and trading sites, office building and the related infrastructure;

- To develop - jointly with Brillianty ALROSA -  an AK ALROSA (PJSC) business unit, the mechanism of interaction with the cutting&polishing and jewellery units in the Republic of Sakha (Yakutia) regarding the rough diamonds using a tolling scheme for up to US$100 mln per year;

- To develop the mechanisms of subsiding the 1/4 of the bank credit interest rate using the budget money for the cutting&polishing and jewellery units, and purchasing part of production by SUE Komdragmetall of the Republic of Sakha (Yakutia);

- To take actions to co-finance the expenditures for the participation of the SMEs of the cutting&polishing and jewellery industry in the national, international jewellery exhibitions using the federal and republican budgets.

Thank you. Good luck and success to you!

Yuri Danilov, for Rough&Polished