Russia exported 22,844,000 carats of rough diamonds worth some US$1.529 billion in the January to October 2008 period, says a spokesman for the country’s Finance Ministry.

Russian exports to countries that are part of the European Union in the nine month period amounted to 16,326,000 carats of diamonds worth US$1.129 billion. The country’s imports amounted to 225,179 carats of diamonds worth some US$36,149,000 during the January to October 2008 period.

Russian imports from European Union countries amounted to 215,151 carats worth US$30.75 million during the nine month period. During the third quarter of 2008, imports reached 151,890 carats, more than double the 73,289 carats imported in the entire first half of the year.

Russia produced US$2.37 billion worth of rough diamonds in 2007.

Source: www.diamondintelligence.com

Russia’s largest diamond producer Alrosa  said on Wednesday net profits calculated to Russian Accounting Standards fell 62.3% year-on-year in January-September 2008 to 3.54 billion rubles ($131 million).

The company’s net profit in the third quarter of the year was 112.57 million rubles ($4.2 million), a 96.7% plunge year-on-year.

Alrosa, which accounts for 97% of Russian and 25% of global diamond output, produced diamonds worth $2.37 billion in 2007. The Russian government holds a 50.9% stake in the company.

By RIA Novosti

An interview with Alex Popov, President of the Moscow Diamond Exchange

In general, how is the Russian economy being affected by the global financial crisis? Are the Russian banks and financial institutions stable?

The Russian Government has always put its priorities in gaining independence from the world. In this troubling situation this policy has paid off. In general, the Russian economy has not been as seriously affected as the US or others.

Nevertheless, some banking institutions are involved in various non-banking projects and today face the uncertainty of real estate and retail boom.

Consumer interest rates have gone up to 16-18%, together with deposit rates that jumped to 15%. The prevailing opinion is that banks fully or partially owned by the state will have no liquidity problems and small commercial banks may suffer.

Another important factor in the Russian marketplace is the memory of 1998 default, when most Russians lost all their savings. This memory keeps ordinary people out of banks and other financial institutions.

The level of debt is much lower than in other countries. Therefore, being a “cash” economy, Russia is less prone to debt-related problems than other countries.

continue reading "The Russian Economy is Better Equipped to Withstand the Current Global Crisis"

Russia’s Federal Anti-Monopoly Service (FAS) is expected to issue approval within the month on De Beers’ planned purchase of a 49.99 percent stake in the country’s Arkhangelskgeoldobycha mining firm. This firm owns the license to explore for and mine diamonds at the Verkhotinskaya property until December 29, 2008.

The deal was approved in principle earlier this month at the first meeting of the government commission regulating foreign investment in strategic sectors. Prime Minister Vladimir Putin chaired this initial meeting and expressed that while a new law on investment in strategic sectors introduces new procedures for foreign investors, the sectors are still open to foreign investment and the procedures for foreign investors are “maximally transparent and clear.”

continue reading "FAS REGULATOR TO APPROVE DE BEERS’ PURCHASE OF STAKE IN RUSSIAN MINING FIRM"

Kristall of Smolensk, Russia’s largest cut diamond producer, will supply 6,000-7,000 carats of rough diamonds to Armenia by the end of this year to be cut and polished, says Gagik Kocharian, Head of Trade Policy and Domestic Market Regulation at the Armenian Economics Ministry, referring to a deal signed with Diamond Company of Armenia (DCA). The first consignment consists of 650 carats of diamonds. Kocharian expects the new agreement to help revive the Armenian jewelry industry.

Armenia has not received rough diamonds from Russia in recent years due to the liberalization of rough diamond prices. Armenia used to receive up to 6,000 carats under an annual quota agreed by the two countries’ governments.

Kristall, whose turnover increased 13 percent to US$404 million last year, agreed at the start of this year to have diamonds which cannot be cut and polished economically in Russia processed by Armenian cutting plants.

Source: BIB