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22:02 | Aug 16 | 2011

Yakut Diamonds to Turn into Masterpieces of World Heritage

According to Sberbank of Russia, “Yakutskaya Almaznaya Kompania” was recognized as one of the most dynamically developing enterprises in the field of diamond industry complex of the Republic of Sakha (Yakutia) in the first half of 2010. As CEO of the company Alexander Maximov, puts it: the success is assured not only by his company’s own potential but also by correct economic policy of JSC “ALROSA”, which could not only find a dignified way out of crisis, but also supported their partners – diamond cutting enterprises in Yakutia.

– Over the past 10 years no new diamond cutting enterprises were actually created in Yakutia. Your company has been an exception. Do you feel very “young” in the industry?

– It came around so that the establishment of the “Yakutskaya Almaznaya Kompania” coincided with the beginning of the global financial crisis, which most noticeably reflected in Yakutia in two fields: building and construction and diamond industry complex. So, despite the “youth”, we were disciplined by adversity.
– How did you survive the crisis?
– That, from my point of view, is the merit of our strategic partner, joint stock company “ALROSA”, which, thanks to the professionalism of management and true landmarks of their internal policy, managed to overcome the crisis and at the same time provide invaluable support to all the diamond cutting companies of the republic. I am confident that the new company management represented by Fedor Andreev had a crucial part in this. Of course, the invaluable real support for us, Yakut cutters and jewelers, in the times of the crisis came from the leadership of the republic duly represented by the then President of Yakutia Vyacheslav Shtyrov and Chairman of the Government of Sakha (Yakutia) Egor Borisov, who, as we know, became head of the Republic this summer.
– Has the situation leveled off today?
– Yes, and representatives of the industry confidently move forward, making new plans which include foreign economic activity. “Yakutskaya Almaznaya Kompania” is not yet represented as a regular participant in the domestic markets of the Asia-Pacific region, though we do have such plans and prospects. We already have experience of cooperation with foreign partners in Europe and Middle East. We  articipate in the Israel Diamond Exchange in Israel and we became participants of the Free Economic Zone in Belgium and the United Arab Emirates.
– Are there any factors that keep down the dynamic developing?
– First of all, it is necessary to emphasize one important point for all of the diamond and jewelry companies in the country. This is the VAT issue. In my opinion, effective and efficient results for Russian exporters would be brought by a more rapid declarative mechanism for the value added tax returning. Such step would allow Russian cutters to achieve better economic performance.
– Is your initiative supported by other market participants?
– I am sure, such a mechanism would be of interest to all participants. Although, the consolidated attitude has not been defined yet. In these terms, I would like to mention the public initiative of “Yakutskaya Almaznaya Kompania” to create a new public diamond cutting industry representatives organization. This will allow us not only effectively communicate with JSC “ALROSA” and the administration of the republic, but also be consistent in shaping domestic policy for the development of diamond complex of Sakha (Yakutia). In addition, the commitment of a new social organization would strengthen the positive image of the industry.
– And, of course, the development of commercial success?
– My answer to this question will be like this: nevertheless, the main objective of our common work is not only in achieving business results. We work for the better future of our republic. We want Yakutia to become one of the most promising Russian regions subjects and an active player in the entire world’s market thanks to one of the main components of its economic potential – diamond industry complex.
I guess I won’t step short if I sound out our common dream: the wish that a real Yakut diamond, as well as our national heroic epic “Olonkho”, could turn into some kind of a masterpiece of world heritage of mankind!