Russia and Africa, which together account for more than 90% of the global diamond mining market, should collaborate and establish joint standards for sustainable business development in the gemstone industry, according to Pavel Marinychev, the head of Russian mining giant Alrosa. Speaking at the Russia-Africa Summit in St. Petersburg, Marinychev emphasized the need for state-owned diamond companies in Russia and Africa to come together and decide on a common sustainable development agenda and responsible business standards. He stressed the importance of these standards being mutually agreed upon and not imposed on either party.
Marinychev argued that such dialogue and cooperation between African diamond-producing countries and Russia would ensure a stable, predictable, and sustainable diamond market that serves their respective national interests. This collaboration would help both regions maintain their dominant positions in the diamond mining market and contribute to the overall growth and stability of the industry.
Alrosa, the largest diamond producer in the world, currently holds a 30% share of the $80 billion-per-year global trade in rough precious stones. Russia’s diamond trade has managed to evade sanctions thus far, thanks to resistance from major importers like Belgium, home to the world’s biggest diamond trading hub in Antwerp. Brussels has continuously blocked the European Union’s plans to impose an embargo on Russian diamonds, citing concerns that such a move could lead to significant job losses.
Despite the resistance from Belgium and other importers, the EU and the Group of Seven (G7) have been actively exploring ways to restrict the trade of Russian diamonds. They have proposed the implementation of a “watertight” tracking system to monitor the movement of diamonds across borders. This tracking system aims to ensure that the trade of Russian diamonds complies with international regulations and is not associated with any illegal activities.
The push for joint standards and collaboration in the gemstone industry comes at a critical time when concerns regarding responsible business practices and sustainable development are gaining prominence worldwide. The mining and trading of gemstones raise various environmental and social issues, including labor rights, environmental degradation, and the financing of conflicts. By working together and establishing common approaches in these areas, Russia and Africa can uphold industry standards and enhance the reputation of their diamond products.
In conclusion, the head of Alrosa, Pavel Marinychev, has advocated for Russia and Africa to develop joint standards and a sustainable business development roadmap in the gemstone industry. The collaboration between state-owned diamond companies in both regions would ensure a stable and sustainable diamond market. This cooperation is crucial for maintaining their positions as key players in the global diamond mining market. Additionally, the implementation of common standards would address concerns related to responsible business practices and contribute to the long-term growth and reputation of the industry.
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