Jeweller - May 2022

News
Russia causes turmoil and upheavel at Responsible Jewellery Council
Russian diamond mining juggernaut Alrosa has withdrawn its membership from the Responsible Jewellery Council.
It’s been a tumultuous month for the Responsible
Jewellery Council, losing an executive director and
suffering the withdrawal of a number of major
members.
The RJC was thrown into chaos in late March with
the loss of two major members, with Richemont
and the Pandora Group announcing an end to their
association with the Council due to a lack of action
over Russia’s role in the Ukrainian conflict.
While the RJC boasts of a membership count
exceeding 1,400, the loss of the Pandora Group
($AU2.95 billion in annual revenue) and Richemont
($AU20.82 billion in annual revenue) marked major
losses in status for the Council.
The drama continued on 29 March with the
resignation of executive director Iris Van der Veken.
Van der Veken, took on the role of executive
director in 2019.
It was awkward timing to say the least, with the
RJC making a public post on social media website
Linkedin congratulating the then executive director
on her three-year anniversary with the organisation
in the days leading up to her resignation.
The core issue dividing the RJC – which was
founded in 2005 - has been what action in response
to Russia’s invasion of the Ukraine in late February.
Alrosa, the world’s largest diamond mining
company, is one-third owned by the Russian
government.
Alrosa provides approximately one third of the
world’s rough diamond supply and, was directly
sanctioned by the UK government as a punitive
measure in response to the Ukrainian conflict.
Alrosa voluntarily stepped down from the position
of vice chair of the RJC in early March, however the
move was marked as temporary and since then,
the RJC has not commented on the matter publicly.
In public statements following the resignation, both
Richemont and Pandora Group representatives
lamented the RJC’s lack of response to the
Ukrainian invasion.,
According to Reuters, Richemont CFO Burkhart
Grund addressed the issue in Geneva, saying
"We're trying to uphold the very high standards
we've been shaping over the last 15 years."
Exodus continues
The pain continued for the RJC with luxury
watchmaker Watches of Switzerland and diamond
mining company Alrosa exiting the organisation
shortly after the resignation of Van der Veken.
Watches of Switzerland released a statement
expressing dismay over the RJC’s inaction following
the Russian invasion of Ukraine in late February.
“The Watches of Switzerland Group is shocked and
appalled by the invasion of Ukraine by Russia,” the
statement read.
“We stand with Ukraine and its brave people at this
devastating time.
“The Responsible Jewellery Council’s approach
goes against the common values we expect
from our industry in response to the situation
and we have therefore decided to withdraw our
membership from the RJC.”
The following day, the RJC confirmed that Russian
diamond mining juggernaut Alrosa had suspended
its membership.
“Like so many, we are deeply saddened by the
current geopolitical crisis,” RJC chair David
Bouffard said.
“These have been challenging times and the Board
of the RJC has been pursuing a thorough review of
the situation and, as it is committed to do with each
of its more than 1,500 members, ensuring due
process was followed.
“The Board of the RJC understands and respects
Alrosa’s decision to suspend its membership and
thanks them for their commitment over the last
five years.”
Kering, the French-based multinational with
luxury brands Balenciaga, Bottega Veneta, Gucci,
Boucheron, Pomellato, Qeelin and Yves Saint
Laurent has also quit the RJC.
Above: Iris Van der Veken; John Hall
Hall takes over
On 7 April, the RJC announced the appointment of
John Hall as interim executive director.
Prior to the resignation of Van der Veken, Hall was
serving as vice chairman for the RJC.
He previously worked with mining company Rio
Tinto in London as general manager of external
affairs.
Hall was a founding member of the RJC in 2005.
According to Rapaport News, the RJC distributed
a letter to members, within which chairman David
Bouffard announced the appointment of Hall and
defended recent criticism of the organisation for
failing to suspend the membership of Russian
mining company Alrosa.
“John (Hall) is a highly experienced executive with
deep expertise in reputational strategy and ethical
supply chains in both the jewellery and mining
industries,” the letter read.
14 | May 2022