Richemont, Pandora Quit Jewelry Trade Group Over Russia Stance -- Update

By Joshua Kirby

Compagnie Financiere Richemont SA and Danish jeweler Pandora AS have withdrawn from the Responsible Jewellery Council in protest at what they describe as the trade body's inaction over Russia following the country's invasion of Ukraine last month.

Swiss luxury-goods group Richemont, which owns jewelers Cartier and Van Cleef & Arpels, said Wednesday that the company and its houses were stepping down from the RJC, since they "do not wish to be members of an industry organization that includes companies that contribute to financing conflicts and wars."

The RJC, a body that aims to ensure the ethical and environmental sustainability of its members' products, includes among its members most large jewelers and suppliers, including Russian diamond miner Alrosa Co.

Richemont previously said it had halted all Russia operations on March 3, following the invasion.

Pandora also said Wednesday that it is quitting its 12-year membership of the RJC. "The decision follows the RJC's failure to suspend Russian companies' memberships and responsible business certifications and urge its members to suspend business with Russia," Pandora said.

RJC Chair David Bouffard told Dow Jones Newswires that the group was shocked by the conflict in Ukraine, and that a third-party legal review of Alrosa's membership is currently underway.

The Russian company stepped down from its leadership roles at RJC on March 3, according to RJC's website. Any subsequent action would be in addition to this, Mr. Bouffard said.

Alrosa didn't immediately respond to a request for comment.

"The war requires all businesses to act with the utmost responsibility regarding any interactions or business dealings with Russia and Belarus. Pandora cannot in good faith be a member of an association that does not share our values," Pandora Chief Executive Alexander Lacik said.

The company has meanwhile instructed all its suppliers and business partners that no raw materials, products or services can come directly or indirectly from Russia or Belarus, it said. The company previously suspended all business in the two countries at the end of February.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

March 30, 2022 12:13 ET (16:13 GMT)

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