The idea of transparency is at the heart of the Kimberley Process, but the recent rough diamond numbers coming out of Moscow do little to aid clarification, with the main problem being the value of exports.

 

Russia has published quarterly figures starting from the first quarter of 2003. Rough diamond production totaled 33,019,000 carats in 2003, valued at $1.676 billion. This is slightly higher then the $1.61 billion worth of diamonds calculated by industry analyst Chaim Even-Zohar, but probably because it includes industrial diamonds as well as gem quality diamonds.

 

During the first six months of 2004, the country produced 17,763,000 carats, worth $948 million, the Russian Finance Ministry said.

 

Information on rough diamond exports from the ministry is broken down into three major categories: unsorted industrial diamonds; rough, sawn, cleaved and bruted industrial goods; and gem quality rough, sawn, cleaved and bruted goods.

 

The U.K., Belgium and Israel are the leading destinations for gem quality Russian rough. London bought $266.44 million worth of the goods during the first half of 2004, importing from Russia 3.347 million carats.

 

Antwerp follows, purchasing $175.7 million of rough during the first half of 2004, weighing over 2.837 million carats.

 

Israel, according to the data, imported from Russia 939,000 carats of rough valued at $51.23 million during the period.

 

The leading destinations in 2003 for rough were again the U.K., Belgium and Israel.

 

The U.K. bought $640.7 million (9.848 million carats); Belgium imported $114.6 million (2.375 million carats) and $81.5 million (1.58 million carats) were shipped to Israel in 2003.

 

These figures are much different then the initial figures released last Thursday. Since this is the holiday season, no confirmation from British, Belgium or Israeli authorities could be obtained.

 

The interesting numbers are those relating to the U.K. While it does not name any buyers, practically all exports to the U.K. are to De Beers where it is mixed with the rest of its goods before being sold to DTC Sightholders.

 

According to these figures, Alrosa sold to De Beers at most $640 million worth of rough in 2003 at an average price of $65.06 per carat. This year price per carat stands at an average of $83.65 for the first three quarters of the year, up from $79.6 during the first half of the year.

 

During the first three quarters of 2004, Russia shipped to the U.K. 5.155 million carats to the tune of $431.25 million. Even though sales during the second half of the year are higher then during the first half, it does not seem likely that fourth quarter sales to De Beers will put annual sales at much beyond $650 million.

 

This will require sales of nearly $220 million during the last quarter, an unlikely figure.

 

An interesting piece of data relates to India. The leading polishing center imported very little rough directly from Russia. No data is shown for the first three quarters of 2003, with only 81,000 carats valued at $700,000 exported to the sub continent in the fourth quarter. An average of $8.64 per carat.

 

This year, however, India imported rough from Russia in the second and third quarters. These imports stand at 21,000 carats and 51,240 carats respectively, valued at $1.274 million and $2.459 million. This puts the average price per carat at $60.57 during the second quarter and $48 per carat during the third, perhaps indicating an unstable supply.