Interfax News Agency, Russia
Aug 13 2008

Kristall to have 6,000-7,000 carats of diamonds cut in Armenia

YEREVAN Aug 13

Kristall of Smolensk, Russia’s biggest 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, Gagik Kocharian, head of trade
policy and domestic market regulation at the Armenian Economics
Ministry, told Interfax.

Kocharian said the deal was signed with Diamond Company of Armenia
(DCA). The first consignment consists of 650 carats of diamonds.

Armenia has not received rough diamonds from Russia in recent years
because prices for rough diamonds have been liberalized. Armenia used
to receive up to 6,000 carats under an annual quota agreed by the two
countries’ governments. Kocharian said the new agreement would help
revive the Armenian jewelry industry.

Kristall’s general director, Maxim Shkadov, was in Armenia to discuss
issues of cooperation with the country’s prime minister and economics
minister on Tuesday. Kristall agreed at the start of this year to have
diamonds which cannot be cut and polished economically in Russia
processed by Armenian cutting plants.

Kristall’s turnover rose 13% to $404 million in 2007.