News

Advanced Search

Alrosa to Stop Funding the Natural Diamond Council

Mar 6, 2022 5:35 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT... 
Alrosa has left the Natural Diamond Council (NDC) amid the fallout from Russia’s invasion of Ukraine.

“The board of directors of the [NDC] has today received Alrosa’s decision to suspend its membership,” the council said in a statement Friday. “In suspending its membership, Alrosa has stepped down from the board and will cease all financial contributions.”

The NDC carries out category marketing on behalf of the industry, receiving its funding from a group of major diamond miners, including De Beers, Rio Tinto and Petra Diamonds. With Alrosa’s exit, the organization is losing one of its largest sources of money.

“We understand and respect Alrosa decision given the current geopolitical situation,” said David Kellie, CEO of the NDC. “We are confident that Alrosa will continue to follow its outlined commitments to being a socially responsible business conducted according to the industry’s best practices and high standards.”

Alrosa has been investing “billions of dollars” in building and supporting communities around its operations, Kellie noted, wishing the company a quick resolution of the difficulties.

“The current situation is unprecedented,” Alrosa said Friday. “The company continues to monitor and analyze repercussions it might have for the industry and relationships that have been built over decades across the world. Alrosa takes time to reassess the portfolio of its key projects, standing firm with the principles of sustainability and full transparency.”

The Ukraine war, which began on February 24, has led to US sanctions against several Russian entities — including Alrosa and its CEO — and condemnation of the Kremlin in many circles. On Thursday, the Responsible Jewellery Council (RJC) announced that the miner had voluntary stepped down from its board.

De Beers said it was “shocked by the violence in Ukraine and inspired by the bravery of its people.” Its parent company, Anglo American, condemned Russia’s actions. Both organizations will make donations to help the people suffering.

“The conflict in Ukraine does not currently have any direct impact on Anglo American’s business, as we have no operations or offices in Ukraine or Russia,” the group explained. “There is potential for broader markets and supply chains to be affected, and we are working with our partners and industry bodies to monitor the situation and prepare for any disruption.”

The World Diamond Council (WDC), which represents the trade at the Kimberley Process (KP), urged members to comply with the sanctions.

“As an organization dedicated to the eradication of conflict and the pursuit of human rights and dignity, the World Diamond Council is dismayed by the loss of life, the injury to people and the displacement of innocent individuals and communities in the Ukraine and the region,” it said. “We fervently hope that peace is restored as soon as possible.”

See Rapaport’s resource page for more information about the sanctions.

Image: Alrosa’s Nakyn ore field. (Alrosa)
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share
Tags: Rapaport News
Similar Articles
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2022 by Rapaport USA Inc. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are registered TradeMarks.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.