The 34th World Diamond Congress convened in Moscow Tuesday, in a joint panel of the World Federation of Diamond Bourses (WFDB) and the International Diamond Manufacturers Association.

The World Diamond Congress is expected to focus on the diamond industry's recovery from the global financial crisis.

Attending the opening ceremony, were Russian Deputy PM and Finance Minister Alexei Kudrin, Alrosa Chairman Fyodor Andreyev and Valery Bogomolov, President of the Russian Diamond Manufacturers Association. Sergei Ulin, Vice President of Alrosa, led the opening ceremony.

Kudrin stated that the solidarity which helped diamantaires through the recession, is much needed during the recovery period.

Alrosa President Andreyev added that positive conclusions could be drawn in respect to diamonds as an investment, based on Gokhran's performance, which accumulated some $1 billion worth of rough diamonds during the crisis. The rough's value added 15-18% during that time.

IDMA President Moti Ganz said that during the diamond industry's recovery from the crisis, its members must change their perception: "I say our behavior is irrational. When the banks cut credit lines and demanded additional assurances, they made us 'bring money from home.' We can say, with pride, that we did, and we've increased our capital base, but did we do that to keep financing the retailers?

"In stead of analyzing what happened during the financial crisis and changing our methods of operation accordingly, we are reverting back to the business practices of the past, as if nothing even happened. As if nothing has changed."

Ganz added that jewelers were now restocking, giving diamond manufacturers the opportunity to dictate their terms and turn the market from a "buyers' arena" to a "sellers' arena."

WFDB President Avi Paz said that the diamond industry is "facing many challenges… mainly due to the implications of the global economic downturn on our industry - but not only. One can say with no hesitation that we are still in the midst of the most difficult time in the history of our trade.

"Our purpose was - and still is - to sustain the viability and stability of rough supplies… We all hope that the worst is already behind us and fortunately, without going into specifics, I dare say that on the overall, up till now, we have weathered the many challenges rather well."

Paz added that the diamond industry had reason to be optimistic about the future, as long as it remembers the lessons learned during the recession.

Both Ganz and Paz addressed one of the convention's main topics – Zimbabwe and the situation in the Marange diamond fields.

Ganz said the industry had a choice between KPSC Zimbabwe Monitor Abbey Chikane's recommendation to allow Harare to trade in diamonds, or al-Qaeda, "saying that Zimbabwe's rough must be introduced a legitimate diamonds, because they are legitimate.

Paz added that the "deadlock is bad news for our industry and I would like to use this opportunity to call, once again, upon all stakeholders – governments, NGOs and industry members, to cooperate in working towards a viable and acceptable solution to the Marange Mine issue.

"The Kimberly Process is vital and important for our industry and we all have to make sure it is strong, fair and effective."