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Vladivostok in diamonds
ALROSA presents to the WEF the Eurasian Diamond Center, which is organized for it by private investors
Today, August 22, AK ALROSA is to start trading in rough diamonds in Vladivostok. They will last until September 3 and will be held at the Sberbank office in the Far Eastern Federal University. And within the framework of the EEF, the company will not only summarize the results of these auctions, but also hold an open auction of rough and polished diamonds, an exhibition and retail sale of polished diamonds, and will also present the Eurasian Diamond Center (EAC) - the very project of the “diamond exchange”, the creation of which was commissioned by the year back to the largest diamond mining company in Russia, Plenipotentiary of the President of the Russian Federation in the Far Eastern Federal District, Deputy Prime Minister of the Russian Federation Yuri Trutnev.
The presentation of the EAC is spelled out in the business program of the forum; in it the participation of the president of the company Andrei Zharkov, the first deputy head of Gokhran of Russia Andrey Kutepov, and also the head of the specialized customs post of the Central Excise Customs of the Federal Customs Service of Russia Alexei Antipov is announced. In addition to them, Deputy Director General of SDDymond LLC Vladimir Bugaev, Vice-President of ALROSA, Yury Okoyomov and Sergey Khiryakov, who was named the founder of the EAC, were among the participants. The moderator of the presentation will be the director of the ALROSA branch in Vladivostok, Andrey Novikov.
The company keeps a deathly silence about the EAC project, promising to reveal all the details during the presentation itself. Nevertheless, as follows from the announcement of the event in the WEF business program, the creation of the EAC is an initiative of ALROSA. And the center itself “will allow to unite specialized companies of the diamond industry: companies for the extraction and sale of rough diamonds, manufacturers of diamonds and jewelry, gemological laboratories, banks, insurance companies, specialized carriers, as well as state structures: federal customs services of the Russian Federation and the state control.
To ensure the work of the EAC, the Supervisory Board of ALROSA 20 March 2016 decided to establish a branch in Vladivostok. The branch's competence includes increasing sales of ALROSA products, developing a regional presence and expanding cooperation with companies and clients from the APR countries, primarily China, Japan, Singapore, etc. The branch should also be responsible for finding potential partners and investors to create production capacities for use of technical diamonds, production of equipment for the diamond-border industry. "The expediency of opening a branch in the city of Vladivostok is determined by other significant factors - the attractiveness of the special economic zone, the simplified visa regime for foreign citizens. In addition to this goal, the branch will collect analytical information about the Asia-Pacific region - from the point of view of the Company's interests, "ALROSA reported.
Exchange, but not only
The EAC is, in fact, the project of the Russian diamond exchange, which ALROSA was commissioned by Yuri Trutnev. It will have to compete with traditional trading floors. The main one of them historically exists in Antwerp, where up to three quarters of all diamonds in the world are sold, including a significant part of ALROSA stones. In recent years, the competition to Antwerp is increasingly composed of Dubai (UAE), Mumbai (India), Ramat Gan (Israel) and the centers of the New World. "The appearance of each" diamond pad "is entirely logical. For example, the New York Stock Exchange is the way to the largest diamond market, the recently launched exchange in Panama should meet the needs of market participants from Latin America. Antwerp is historically the largest center with a very serious reputation, Mumbai is access to the largest lapidary production, and for Israel the diamond and diamond industry is also considered a traditional one. Dubai is using its advantageous geographical position halfway between South Africa and Asia, "the article in the Yakutia newspaper noted.
At the same time, interestingly, the EAC is not only a stock exchange, but, above all, an infrastructure site intended for international trade and processing of diamond products. And it is created in Vladivostok because of the proximity of the city to the APR and the promised simplified visa regime "porto-franco". According to the source EastRussia, within the EAC in Primorye, a full-fledged "diamond cluster" should appear, where, as in a "single window", all possibilities will be reduced - from the customs and state control of the RF Ministry of Finance to offices, trade halls and exhibition grounds. Back in July, TASS reported with reference to the representative of AK "ALROSA" that the EAC in Vladivostok will fully work in 2017 year. Open it is planned in the old building of the city airport. "The new center will house a customs post, a point of assay chamber and a representation of Gokhran. Also in this territory there will be a depository for precious metals and stones, organized production and trading platforms, "the representative of the company told then the agency.
Thus, the function of the stock exchange will be sharpened only for one rough diamond seller, ALROSA, which will allow the largest Russian diamond mining company to directly influence the global diamond market (at least to its Asian segment). A representative of the company, Andrey Matveyev, told RNS in July that the work of the EAC will be aimed at consumers in the APR countries and India. And the basis for the work will be raw materials supplied exclusively by ALROSA. President of the company Andrei Zharkov earlier reported that the opening of the EAC in Vladivostok could allow to increase direct sales of raw materials of the ALROSA Group to the APR countries by two to three times, with the exception of India (now the share of diamonds supplied to these countries by ALROSA is about 50% the truth, most of it is just exports to India). The development strategy of ALROSA provides for a concentration in the core business and an increase in the extraction of rough diamonds to more than 41 million carats by 2019 year (2014 million carat in 36,2). The growth in production will be provided by existing fields, as well as the commissioning of new projects.
"There will be no revolutions. We do not plan that we will post a flag in Vladivostok and say: you will only buy diamonds from ALROSA here. There are no such plans, but to touch this platform, start conversations with traditional buyers from China: will not it be convenient for them to travel not to Antwerp, but to Vladivostok. Such conversations are conducted. The reaction is positive ... And I do not see anything terrible if we invite someone from existing brokers. They are not screwed to Antwerp, they are mostly citizens of quite different countries, "Yury Trutnev noted earlier.
"They will manage themselves"
This is exactly the way Yuri Trutnev answered the journalists' question about whether the state will participate in the creation of the diamond exchange. ALROSA took under the visor. "The EAC is not just a project of ALROSA. Partners will be involved in the creation of the EAC, among them TBSB, KGK and others, "Andrei Matveyev said in an interview with RNS.
Indeed, LLC "Eurasian Diamond Center" is a private company, and not a "daughter" of a diamond giant. As follows from the data of Kartoteka.ru, this LLC was registered in May of this year in Artem, in the house №41 on the street of Vladimir Saibel. At the same address, companies such as TZK DV LLC, Sumotori-Autoport LLC, Perfect LLC, Energia Finance LLC and Ozerny Klyuch Airport LLC are legally registered. EAC is attributed to microenterprises, with an authorized capital of 100 thousand rubles. The general director is Igor Maratinovich Shteinberg, who has been holding the same position in JSC Integrated Resort of Primorye since June, whose main activity is "organizing and conducting gambling and betting".
The main activity of LLC "EAC" is "provision of services for the storage of valuables". But the list of additional types is extensive and includes a variety of positions - from the production of precious metals, jewelry and technical products from precious metals and stones, wholesale trade in precious metals, precious stones, gold, jewelry and for some reason waste and scrap, to the production of watch mechanisms and devices time, as well as chairs and other furniture for sitting.
100% participant of LLC "EAC" is another LLC - "TBCS", specializing in letting out your own real estate, as well as renting cars, vehicles and equipment. This company is registered in Moscow along Smolnaya Street, 12, where another two hundred companies are registered, one way or another connected with diamonds, diamonds and precious metals. 86,5% in LLC "TBSS" belongs to Sergey A. Khiryakov, born in Tver, owner of "Spektr" Ltd. (also engaged in letting his own non-residential property). Another 13,5% in the company is recorded on Nina Ivanovna Mironov, of whom in the database Kartoteka.ru There is only one record - in 2012, it was the liquidator of a certain LLC "AV +", registered at the same place, along Smolnaya Street, 12.
“The form of a legal entity in this case does not matter, in fact, the EAC is a shell, a premise under which roofing production, trading platforms, a customs post, an assay office, a Gokhran representative office and a storehouse for precious metals will be located and work and stones. It’s possible that the vault and sales area will be part of this legal entity (not necessarily, by the way), but the production will most likely be owned by other companies, and the customs office, the assay office and the Gokhran office will be represented by state authorities, ” expert analyst at FINAM, Alexey Kalachev.
According to the expert, ALROSA is the largest diamond-mining company in the world in terms of extracted diamonds (30% of the world market), which also produces and sells diamonds. And so she might well have her own, "home" trading platform. "But diamonds, like any specific commodity, require the creation around the actual trading floor and a whole range of related services. To work in this market, it is important to have a developed transport infrastructure, in this case ports. Apparently, taking into account the special regime of the Free Port and the Territory of Advanced Development (TOP), structures created within the framework of the Diamond Center can expect structures for certain benefits. Also for Alrosa, the proximity of China's largest neighbor is important. Perhaps, the Chinese partners of the company will be interested in using this site for organizing processing of its raw materials and manufacturing jewelry products that they can sell on the Russian market. In any case, such assumptions were also voiced, "Kalachev said.