Alrosa May Set Up India Office

Russian diamond giant Alrosa is likely to open an office in India to handle rough diamond sales, according to Indian media reports. Chairman Vladimir Kalitin has in the past announced plans to open offices in India and the U.S.

Co-operation in the diamond sector is expected to be at the top of the agenda in talks between India and Russia later this week during a visit to the sub-continent by Russian President Vladimir Putin.

“India is seeking a direct supply of rough diamonds from Russia and the matter is expected to come up during Putin’s visit,” said sources quoted by India’s Financial Express.

Alrosa, which produces almost all of Russia’s diamonds, also has operations in Angola and accounts for around 20 percent of the world’s rough diamonds. Small-sized diamonds, or ‘Indian goods’, amount to some 60 percent of Alrosa’s output.

Sources said that the company is mulling raising its production capacity and that there have been test sales to India of diamonds from the Gokhran, Russia’s state minerals depository.

Alrosa said in October that it wants to move forward with plans to market its rough diamonds to the global market on its own, but still hopes the European Union will approve its deal with De Beers.

If the plan does go ahead, Alrosa said it will demand independence in decisions on distribution, marketing, advertising and, most importantly, sales decisions. Current laws limit Alrosa’s independence in making such decisions.