Financial crisis 2016: Yakutia’s diamond-cutters and jewelers make search for remedies


The fame and glory of the unique Yakutia’s brilliants and its gold and silver jewelry may disappear due to the Russia’s crisis in diamond-cutting and jewelry industries. The way to support republic companies and to keep brand and production running was primarily discussed at the hearings in the Yakutia’s Parliament on June, 14.

«2015 was a challenging year for Russia’s diamond-cutting and jewelry companies. Its production and end item sales have decreased by 53%. Yakutia’s cutting factories produced brilliants amounting to 103 mln dollars that is less on 38% in compare with 2014. The turnover totaled 174 mln dollars, down 26%. The jewelry production totaled 1.6 bln roubles, up 84% versus 2014. An increase in growth arose from taking into account APL Jeweler LLC, which added extra 937 mln roubles. The reduction totaled 16% without it. The jewelry turnover decreased up to 9%»,Andrey Panov, the Minister for Industry, said.

First quarter of 2016 didn’t show any positive changes too. The cutting plan was fulfilled up to 96.6%, the jewelry production plan – 73%. According to the Ministry for Industry, such an aggressive reduction caused by the financial crisis. At that, Yakutia’s companies showed a stable growth in 2009-2014.

Yakutia’s diamond-cutting and jewelry companies believe that creating of Territories of Advanced Social and Economic Development (TOSER) can help them. The Kangalassy TOSER has already been created in the suburbs of Yakutsk. Their interest can be explained by tax and customs privileges provided for residents of TOSER. It lets them significantly decrease initial cost of products and improve the investment potential.

One of the key issues is the creating of specialized customs service in the TOSER which let residents prepare products for export without any permissions from Moscow. «Actually, this idea has been discussed on a federal level for 15 years. With all our numerous requests this problem is not solved yet», – Panov mentioned.

Increasing interest rate and erosion of purchasing power have the significant influence on this issue. According to experts, the tendency to sales slowdown in a middle-long term will get bigger.




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