ALROSA Proposes Measures to Support Local Diamond Polishers

Russia's ALROSA has suggested steps to aid the country's diamond-cutting and polishing sector via cost-cutting and other means, according to company vice-president Rinat Gizatulin in comments to Interfax.

"We considered the amount of additional revenue that ALROSA received as a result of the abolition of duty, which is about 10-11 billion rubles a year. We do not plan to reduce diamond prices after September 1 due to the abolition of duty, we will keep them at the same level. But we plan additional savings, which will be accounted for in the company's budget. A part of these savings will be, for example, directed as a charitable aid, which will amount to 1.5 billion rubles. Diamond cutting and polishing companies will be eligible to receive this aid depending on their polished production," Gizatulin explained. He added that the proposals have not yet been discussed by ALROSA's shareholders.

Another step is a 90-day payment installment plans for polishers for a total of 40% of their contract value, Gizatulin said. This will not cause any economic damage to ALROSA.

In addition, the miner will discuss the volumes and values of boxes of diamonds provided to its local clients. "We will discuss what are the most effective with Russian diamond cutting enterprises. And we will see how to attract them to deals for purchase of these boxes," Gizatulin added.