Russia Drums up Diamond Deals on PM’s Africa Tour

Russia’s Prime Minister Mikhail Fradkov, accompanied by representatives of diamond exploration firm Alrosa and other heads of Russian big business are expected to sign a number of deals on their visit to South Africa this week.

Fradkov and Russian business are seeking to boost trade with and investment in southern Africa.

The delegation arrived in Johannesburg Saturday after calling for increased cooperation with diamond-rich Namibia and signing documents relating to a hydroelectric plant as well as farming and livestock production in Angola.

Alrosa operations in northeastern Angola account for 60 percent of the country’s diamond output, making it the largest foreign investor in the Angolan diamond industry. Angola is the world's seventh largest diamond producer, ranking fourth in terms of value.

South Africa’s Foreign Ministry said ahead of the visit that the country’s trade with Russia “does not reflect its potential.”

Bilateral trade between the two countries fell from $1.07 billion in 2005 to $419 million in 2006.