Moscow | Thursday
RUSSIAN diamond monopoly Alrosa could scale down supply to South African diamond giant De Beers, with whom it has an accord for selling Russian diamonds on international markets, a finance ministry official said on Wednesday.
A governmental commission responsible for the development of the diamond industry is to call on Alrosa, supplier of 20% of the world’s diamonds, to gradually cut guaranteed diamond supplies to De Beers until 2006, the Russian news agencies quoted the official as saying.
The current contract between Alrosa, which is the second-biggest diamond producer in the world, and De Beers for the sale of rough Russian diamonds on international markets expires on December 31.
The contract commits De Beers to buying at least $550-million(619-million euros) per year of rough stones from Alrosa.
The Russians would like the cooperation to continue, but want to obtain more favourable conditions than last year.
In 2000, Alrosa’s diamond production reached a value of $1,6-billion. The Russian press has reported that at least half of the production from last year was sold to De Beers.
Alrosa and De Beers have been carrying out negotiations about a new accord for selling Russian diamonds and the commission is to recommend that they hold a new round of talks.
It is further to advise the Russian government to lift export quotas on rough diamonds as well as restrictions preventing Russian cutting companies to have diamonds processed outside Russia. – AFP