Kristall of Smolensk plans to increase its output of polished diamonds by 9 to 13 percent, to some $240 to $250 million. In 2001 Kristall produced $220 million worth of polished, down 8.3 percent from 2000.

According to Maxim Shkadov, Kristall's international business manager, Kristall is due to sign an agreement with Russian diamond monopoly Alrosa, on the institution of a trademark and on the shared promotion of polished diamonds locally and internationally.

Kristall also plans to promote its own brand. It will sign an agreement with Alrosa for domestic and international marketing. The company has obtained permission from the assay chamber, and plans to hold a presentation of polished diamonds with quality certificates in the near future, explains Shkadov.

Shkadov says that domestic sales this year may reach $4.5 million, compared with $22.2 million in 2001.