Alrosa Wants to Change Terms of LKI Deal

Russian diamond monopoly Alrosa is aiming to revise some of the terms of a deal with U.S. diamond manufacturer Lazare Kaplan International (LKI) in which it claims to be losing money.

The paper cited an Alrosa source as saying the firm was not happy about supplying large diamonds to LKI since it led Alrosa to lose up to 30-40 percent of its profits on 10-carat diamonds alone.

The cutting and polishing is carried out in Moscow before the stones are sent to the United States for selling.

In a bid to defuse the dispute, LKI Chairman Maurice Tempelsman has suggested that Russia’s Finance Minister Alexei Kudrin, who serves as Alrosa’s chairman, serve as an intermediary to find a solution.

“If Alrosa decides against cooperating with LKI it will be a serious blow to the latter’s image and, to avoid this, Tempelsman has decided to recruit Kudrin as an arbiter,” an industry source told Kommersant.