Russia’s Kristall To Cut Some Diamonds In Armenia

RUSSIA’S KRISTALL TO CUT SOME DIAMONDS IN ARMENIA

Interfax News Agency, Russia
Russia & CIS
February 28, 2008

Kristall of Smolensk, Russia’s biggest diamond cutter, has reached
an agreement to process some of its rough diamonds in Armenia, the
state company said.

Kristall plans to outsource in Armenia cutting of stones that would
be less profitable to process in Russia.

Kristall will sign a memorandum with Armenia’s Diamond Company in
early March on joint processing of rough diamonds.

"The participants in the project plan to work out a joint program
to develop cutting of diamonds in Armenia, which besides process of
raw material will include joint efforts to develop the technological
potential of Armenia’s cutting industry and increase the efficiency
of processing rough diamonds," Kristall said.

Kristall increased its turnover by 13% in 2007, to $404 million.