OWN CORRESPONDENT, Johannesburg | Monday 10.10pm.
DIAMOND conglomerate De Beers may be considering offering rival diamond producer Russia a loan to help the financially stricken government, officials at Russia’s State Treasury said on Monday.
De Beers chairman Nicholas Oppenheimer is due to visit the Russian capital Moscow this week, and is scheduled to meet Prime Minister Yevgeny Primakov on Tuesday. Treasury officials said Oppenheimer is expected to discuss a loan to Russia — the world’s second largest diamond producer –during his talks. The size of the loan, however, is not indicated.
The money would presumably be secured by diamonds held by the treasury. Under Russian law, a decision to take diamonds out of the treasury can only be made by the Russian president. De Beers earlier granted Russia a trade advance of $1- billion to develop Russian diamond fields. The advance was tied to a contract giving De Beers the exclusive right to sell Russian gem-quality diamonds.
* Meanwhile, on Monday Primakov’s long delayed crisis plan to drag Russia out of its economic spiral got an unenthusiastic reception on Monday, with critics labelling it a compromise to all factions in the Communist-dominated lower house of parliament, rather than hard-hitting economic strategy.