Starting from August 2010, Nadezhda Kononovа is the Chairman of the Diamond Council under the President of the Republic of Sakha (Yakutia), which plays a key role in the allocation of quotas for sought-after rough diamonds between the diamond-cutting enterprises of the republic. She is also Adviser to the President of the Republic of Sakha (Yakutia).
It has been noted that the diamond cutting industry of Yakutia reached the pre-crisis level of production. What are the tasks of the Diamond Council in view of the current situation? Are there any new functions acquired by the Diamond Council as a relationship moderator in this field?
The Council is authorized to develop the state policy in the diamond industry and submit proposals shaping it up, to assist in coordinating actions taken by the state authorities and entities of Yakutia’s rough and polished diamond complex. As before, the urgent task is to create more jobs for the republic's population and facilitate a stable development of the industry.
Are there any new proposals for further development of the diamond industry in Yakutia intended to be made by the Diamond Council?
Right now we are gathering proposals both for the current-year work plan of the Diamond Council and for amendments and alterations to the Statute of the Diamond Council. I think no one should expect any drastic changes, as the functions are clearly defined in the applicable Statute and work for the future. We can regard as innovation the fact that recently we used to have frequent meetings with the representatives of the diamond cutting industry. I am impressed by the activity, competence and willingness to work our cutters demonstrate. In my view, these meetings are helpful to all of us.
In what way the Diamond Council will resolve disputes and conflict issues?
We made it a rule to discuss industry problems, prepare discussion issues and documents together with representatives of the factories. We share our concerns and ideas, looking for causes and ways out of this or that situation, as well ways to solve various problems. People are willing to share their thoughts and their ideas, exchange proposals, which are useful to all communication participants. But the main thing is that all this makes us united. I am sure, that the more of such meetings we have, the sooner controversies and conflicts will be overcome.
The change of power and re-composition in such an influential body as the Diamond Council is of great interest to all the players in the diamond industry of Yakutia. In what way will the quotas for deficient rough be allocated?
Right now together with diamond cutters we are discussing these principles and recommendations related to distribution of rough diamonds between the diamond cutting factories. There are voiced different, directly opposite approaches - controversial, bold, loyal, sometimes unexpected, and we discuss them all together, share opinions, listen to arguments and reasoning - and this makes clearer the vector of our movement. Diamonds in Yakutia are sold by the Yakut Diamond Trading Enterprise (YDTE), which is a structural division of ALROSA’s United Selling Organization. The Diamond Council sends its recommendations on the allocation of lots to ALROSA and the company is listening to them - it should be noted that ALROSA’s representatives are sitting on the Diamond Council.
May the expected transformation of ALROSA into a public company affect its relationship with Yakutia’s diamond cutters?
The diamond cutting factories buy rough from ALROSA without any preferences. And I do not think there may be any dramatic changes after the company will turn public. There are no grounds for this. And the company operating in the territory of Yakutia has always been sympathetic to the republic’s interests.
There is a bill for establishing a special economic zone for the diamond industry, including a specialized customs office in Yakutsk, submitted to the State Duma of the Russian Federation and staying there for a long time without much movement. What is your opinion as an expert on this subject?
Logic suggests that the territory producing the lion's share of rough diamonds in Russia should develop in this direction and this also applies to the special economic zone and making customs procedures simpler. There should be economic and legal conditions for a stable and dynamic development of diamond cutting and jewelry manufacturing, including reduced time for VAT refunds permitting companies to have greater working capital. All this will only be of benefit to the country’s economy.
Galina Semyonova, Rough&Polished, Yakutsk
