ALROSA HALTS DIAMOND SHIPMENTS TO ARMENIA

Interfax News Agency
May 22 2008
Russia

The agreement under which Russian diamond-mining monopoly Alrosa
(RTS: ALRS) is supposed to ship rough diamonds to Armenia in 2008
has been temporarily suspended, Economics Minister Nerses Yeritsian
said Wednesday.

The first shipment of rough diamonds was delivered to Armenia last
year, but then shipments did not continue because a problem arose
with Russian customs concerning rough diamond exports under tolling
arrangements, he said.

The Russian authorities planned to resolve this problem last year,
but the issue dragged on due to the presidential elections in Russia,
Yeritsian said.

"I hope that in the summer we will manage to resolve this problem
with Russia. We’re prepared to fly to Moscow today," he said.

Alrosa last December signed agreements with four Armenian diamond
cutters to supply $28 million-$30 million worth of rough diamonds
in 2008. At the time, Alrosa president Sergei Vybornov said that the
first batch worth $1 million had already been delivered to Armenia.

Production of cut diamonds in Armenia tumbled by more than half in
2007, to 43.2 billion dram.

From: Emil Lazarian | Ararat NewsPress