Alrosa Acknowledges Gaydamak Connection

After trying to publicly keep its distance from him, Alrosa said Arcadi Gaydamak is taking part in negotiations between the Russian diamond firm Angolan authorities, but added that he sits at negotiations as part of the Angolan team.

“Alrosa fully adheres to the principles of legality and transparency in its activities. Consequently all our operations in Angola are in full compliance with local, Russian and international legislation,” the company said in a press release.

But still trying to keep itself away from any allegations raised against Gaydamak, Alrosa adds it does not have confirmation or an opinion regarding allegations against Gaydamak. “In our relationships with partners we are guided not by rumors or allegations, but proven facts”.

In an interview with the Israeli daily Ha’aretz, Gaydamak rejected accusations of involvement in selling weapons in Angola during the civil war during an international embargo or money laundering in Israel. He also said he is aiding Alrosa in its negotiations in Angola. Alrosa officials reacted uneasily to this claim.

Alrosa said this week it regards any media allegations against Arcadi Gaydamak as “our competitors’ futile attempt to make us abandon plans to expand relationship with Angola, in particular in diamond marketing and sales”.

Conflicting information, business interests, and an active rumor mill might add to the confusion in the market, but it seems clear that there are changes in the exports of Angolan rough.

The Russian news site RosBusinessConsulting recently quoted a source in Alrosa as saying the company has become a major shareholder in Sunland Mining, which holds rights to export Angolan rough diamonds.

Leviev, through Ascorp, was granted exclusive rights to market all of Angola’s rough diamonds. This deal ended over a year ago when the country decided to not rely completely on outsiders.

State owned ENDIAMA’s marketing subsidiary SODIAM signed two deals last year: one was with Leviev’s LLD to open a joint marketing office in Ramat Gan, and another with Lazare Kaplan, a DTC Sightholder, to do the same in Antwerp. These two offices are already working. A third office, also with Lazare Kaplan, is expected to open in New York later this year and a fourth marketing office is expected to open in Dubai.

It is not clear at this point what marketing deals have been sealed and signed. What is clear is that the battle over the rough diamonds is bigger and includes a wider fight over the sources of the goods, involves other interests and even other industry power players.