Russian diamond miner Alrosa is ready to fully support the Russian rough diamond cutting enterprises with the right quality of diamonds in the required amount, Alrosa president Andrei Zharkov told a Russian jewelry conference, according to a company press release.
Just 1% of the diamonds mined in Russia are cut in the country, explains Zharkov, adding that the Russian diamond processing industry holds great potential for development. Russian domestic demand for diamonds is estimated at some $300-350 million per year, according to Alrosa.
A study by consulting firm Bain & Company found that Russian enterprises have the potential to be competitive, while support from the state will help create a sustainable competitive industry.
Alrosa is involved in the development of a package of measures to support the local cutting industry and has already initiated the formation of a working group under the Ministry of Finance for consideration of measures to support the diamond cutting industry, according to the company press release.
List of recommended measures include the elimination of unnecessary administrative barriers to movement of rough and polished diamonds across the border, and the introduction of a favorable tax regime for the sector, including the reduction of income tax rate from 20% to 5% for 10 years, providing opportunities to attract financing at rates similar rates in India and China, according to Alrosa.
