Exclusive: Putin Will Inform Israel’s PM That Entire Catoca Production Will Be Marketed through Gertler in Israel

Hours before departing for Israel, sources close to Russian President Vladimir Putin revealed that the Kremlin and Alrosa had jointly decided that the entire production of the Catoca mine in Angola will be marketed through DGI, the company owned by Israeli Dan Gertler.

This is a dramatic reversal of an earlier decision to sell the Catoca production through tenders in Antwerp. In reply to our question regarding the “timing” of the announcement, the very senior source said that, as hitherto Lev Leviev (who holds some 18% in the mine) had been marketing the output, the Russian delegation wanted to avoid that the Israeli hosts would complain about the Russian decision to divert the Angolan rough to Belgium rather than Israel.

Alrosa President’s Alexander Nichiporuk is part of President Putin’s official delegation visiting Israel. Other prominent members include Russia’s Foreign Minister and the Deputy Foreign Minister for Middle Eastern affairs. As there have been no official meetings planned between the heads of the Israeli diamond industry and Nichiporuk, the participation of Alrosa’s President seemed puzzling.

Our source said that there were several reasons for this. Mostly, it was to make perfectly clear that Nichiporuk is close to President Putin and is part of the inner circle. The fact that Nichiporuk – a no nonsense businessman who doesn’t usually participate in “photo-opportunity” conferences or social events – is visiting Israel for the second time in a very short period, is also seen as a signal that Israel will become a major marketing partner of the Russian diamond giant.

There seems to be a plethora of “behind the scene” developments around the visit. It is said that President Putin’s scheduled participation in the Russian-Israel Chamber of Commerce event has been cancelled. Upon arrival in Israel, Alexander Nichiporuk indicated that – before going to Jerusalem – he wants to meet with the new bourse president Avi Paz, with Israel Diamond Institute Chairman Simcha Lustig, with Manufacturers Association president Moti Ganz, and --- of course – with DGI’s president Dan Gertler and outgoing bourse president Shmuel Schnitzer. While we are typing these lines, the bourse managing director Yair Cohen is calling “all the presidents back to the bourse.”