Israel Diamond Portal, Israel
June 1 2008

Customs Dispute Hampers Russian-Armenian Diamond Deal

01.06.08, 10:21 / World

AWDC reports that Russian rough diamond supplies to Armenia have been
discontinued since December, when the latter received a $1 million
consignment from giant diamond miner Alrosa. Armenian Finance Minister
Nerses Yeritsyan stated that polishing of the rough from that shipment
was completed in Armenian polishing plants by February.

Minister Yeritsyan noted that the shipments had stopped due to a
customs dispute and expressed the hope that Russia would resume rough
diamond exports by this summer.

The countries’ prime ministers reortedly met in February and discussed
the problem, and the Russian finance minister was instructed to
resolve it. However, according to Yeritsyan, elections in both
countries have caused further postponement.

During the years 2002 to 2004, through Alrosa and Almazyuvelirexport,
Russia annually exported 400,000 carats of rough to Armenia, and in
2005 and 2006 it exported 450,000 carats of diamonds annually.
Subsequently it ceased exporting diamonds to its southern neighbor.

According to an agreement signed in December 2007, Alrosa was to
annually supply $28 million to $30 million worth of rough diamonds to
four Armenian polishing companies.

By: Rachel Lieberman, Israel Diamond Industry Portal

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