The Russian Diamond Manufacturers Association (RDMA) submitted a report to the International Diamond Manufacturers Association (IDMA), affirming that not only is diamond production on the rise in Russia, but rough supplies to the industry will increase after the presidential elections later this month.
In a note posted on IDMA’s website, RDMA reminded the trade of how Russia’s polished diamond production hit $1.35 billion as recently as 2007, however, due to the introduction of value added tax (VAT) on the turnover of polished diamonds in Russia, coupled with “cumbersome and ineffective” reimbursement policies and the market crash of 2008, the country’s polished production plunged to a low of $350 million in 2009.
By 2011, Russia’s polished production had recovered somewhat, to $850 million the group noted, in spite of weaker supplies of rough as well as the VAT issue. “However, there are good reasons to believe that after presidential elections and upon the forming of a new government in the Russian Federation, the stated problems will be solved,” according to RDMA.
The group also stated that Kristall will celebrate its 50th anniversary in 2013 and preparations are underway to mark this occasion.